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← Board Of Management Of Dundee And Angus College

2025-07-31-accounts

Annual Report and Financial Statements For the year ended 31 July 2025

Registered Charity No: SC021188

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Index

CONTENTS

Page
Performance Report
Overview 3 – 14
Performance Analysis 15 – 20
Accountability Report:
Corporate Governance Report
Directors’ Report 21 – 24
Statement of the Board of Management's Responsibilities 25 – 27
Governance Statement 27 – 37
Remuneration and Staff Report 38 – 45
Independent Auditor’s Report 46 – 50
Professional Advisers 51
Consolidated & College Statement of Comprehensive Income 52 – 53
Consolidated & College Statement of Changes in Reserves 54
Consolidated & College Statement of Financial Position 55
Consolidated Statement of Cash Flows 56
Notes to the Financial Statements 57 – 85
Appendix 1 – 2024-25 Accounts Direction for Scotland’s colleges 86

The financial statements were approved and authorised for issue by the Board of Management on 09 December 2025

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Performance Report (continued)

PERFORMANCE REPORT

OVERVIEW

Overview summary

This section of our financial statements is designed to give an overview of high-level College performance and development during 2024/25. This information should be considered alongside other sections of these statements in understanding how our financial management and performance supports the College in achieving its high level outcomes.

Statement from the Principal

Dundee & Angus College continues to be a high performing college in Scotland and has delivered sector leading outcomes for our learners on a consistent annual basis since merger in 2013. It is these performance outcomes that has underpinned the successful conclusion of the D&A College 2025 More Successful Students strategy and carries on into the new 2030 ‘Our College’ Strategy.

The College produced its final annual Regional Outcome Agreement (ROA) in 2023 as the transition from the Scottish Funding Council (SFC) ROA arrangements to the new Outcome Framework and Assurance Model (OFAM) arrangements are progressed. This revised framework operates on a rolling basis to review and assess College performance over a broad range of measures covering almost all aspects of College activity.

The OFAM includes the usual common national measurement plan that links together the key priorities of the College with overall national priorities and expresses these through a range of specific targets, measures and outputs. Progress in respect of all of this activity is reviewed and assessed through a series of meetings with our Outcome Manager from the Scottish Funding Council.

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Performance Report (continued)

SFC data published in July 2025 shows that Dundee & Angus College was the highest ranked college in Scotland for full-time Higher Education courses (FT HE) and was above average in all bar one of the 19 separate student success measures published. The College was in the top 10 performing colleges for 15 of these. This included being ranked 4[th] for outcomes for Care Experienced students and in the top 5 ranking for black and minority ethnic students, students with a disability and older (age 41+ students). Full-time Further Education students at D&A from the most deprived communities (SIMD 10 and 20) perform better than the average for all students in Scotland.

Overall, this performance continues the position of D&A’s successful completion rate remaining significantly above average and sector leading in many aspects.

In each of these areas, this performance helps to address the attainment gap within our communities and supports a higher percentage of students from D&A to progress and develop meaningful future careers compared with national averages.

The post course success of our students has remained consistently high, with this improving by 2.6% during 2024/25, with 96.4% of our 2023/24 student cohort moving into sustained positive destinations (work or further study) within the 6 – 9 month period after completing their course. This performance is supported by our excellent links with local schools and universities and our extensive network of links and partnerships with business.

These outcomes not only reflect the benefit gained from attendance at D&A for the individual students involved but also highlight the very strong value for money that D&A as an organisation offers within our region and at a national level.

The sustained high level performance of D&A College has been set against the on-going need to make financial savings and significant change arising through voluntary severance and management structure changes. During 2024/25 the College took the difficult decisions to cease the public operations of the Gardyne Sports Centre and to close the Gardyne Pool. These changes generated significant public, press and political interest and comment, but were essential in supporting the college to maintain its financial sustainability. Decisions to stop the delivery of service design curriculum and consultancy activities were also taken alongside the decision to close Gardyne Theatre limited (GTL) and return the operation of the Gardyne Theatre space to the College. Combined, these changes will have a net positive impact on College in the 2025/26 budget.

To support the transformation of employability and economic growth within our region and address significant challenges with current infrastructure the College announced an ambitious 10-year infrastructure vision in November 2024.

If realised, this vision would transform the way in which the College operates and would see the College move from the current Kingsway and Arbroath campuses onto new city and town centre sites. Plans would also see redevelopment of the current Gardyne campus.

This is an exciting and innovative 10-year vision that will require funding estimated at £265million to realise. Work is progressing to develop this vision into reality and to identify and secure the necessary funding.

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Performance Report (continued)

Significant work has been progressed on this vision, including an independent assessment of the economic impact of the development, and work to progress the creation of a person centred and joined up approach to the delivery of employability support across the region.

Work to progress the Business Cases necessary to inform approval of the major infrastructure investment required to realise this ambition is progressing well, with the Outline Business Case (OBC) planned for submission in late 2025 or very early 2026.

The independent economic analysis of the infrastructure proposals has identified that the investment made would result in economic benefits of c1.8 billion over its first two decades of operation, delivering a social and economic return of 30% and Cost: benefit impact of £10 for every £1 invested.

The impact of COVID-19 remains evident in the preparedness of many learners and in the decline in mental health wellbeing, resilience, and behaviours of a significant proportion of our students. This significant and on-going impact on learners has underpinned our Changing Learners project and work to support both learners and staff with changing needs, behaviours and expectations.

Aligning with the effective partnerships pledge within our 2025 strategy, positive progress is continuing to be made in respect of the wide range of strategic projects the College is involved in.

The Tay Cities Engineering Partnership (TCEP) continues to work towards achieving project objectives with significant progress against school engagement in 2024/2025. The primary focus is now on developing the relationships with business to deliver 20 projects, 10 new training courses, supporting growth within the sector.

Following the departure of the Head of Curriculum and Quality in Science in August, a new Project Manager has been appointed to lead the Tay Cities Life Sciences (Science Futures) project, with Science Futures making strong progress towards its 2030 targets:

There has been an increase in all targets for underrepresented groups, with the number of students with disabilities enrolled already surpassing the target.

A new information page has been created on the Science Futures website for MAs, and the written and video case studies have been developed as well as a promotional brochure.

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Performance Report (continued)

An online HNC Bioscience and an online HNC Applied Science are under development as well as an online Diploma in Horticulture which is currently in development in collaboration with Intelligent Growth Solutions. Advanced Higher Biology and Chemistry Practical Courses have been created alongside a Good Manufacturing Practice (GMP)

A new tissue culture suite has been set up at D&A, allowing the Animal and Plant Cell Culture unit to be delivered in response to the industry skills scoping exercise.

The supporting SME Skills project continues to progress well with significant progress made towards Tay Cities Year 6 targets. The project has supported, 500 staff in SMEs to upskill and develop their careers.

A new Sustainable Construction Skills project received formal approval in August 2025, with work on this scheduled to commence by the end of the calendar year.

Successful funding applications were made to Angus and Dundee City Councils as part of the UK Shared Prosperity Fund, securing a further investment of £200 000 for workforce development training for businesses in the region and £100 000 for the delivery of Green Skills training to support energy efficiency transition. Significant work is underway to ensure the training is completed by 31 March 2026.

Additional funds were also secured from UKSPF via Angus Council for the successful Parent and Child Maths Homework Clubs. These will continue to run in secondary schools across Angus until March 2026, supporting family engagement within maths education.

The College also secured a small amount of UKSPF via Dundee City Council funding to address maths anxiety within community settings. Plans for this activity are currently being developed with a focus on empowering parents to support children’s maths learning. It is hoped that this work will inform a pilot of the homework club model in Dundee, anticipated to launch early 2026.

Following the transfer of textile manufacturing by Wilkie’s to the Michelin Scotland Innovation Parc (MSIP), the role and focus of the Skills Academy has changed, with the College exiting the physical site in October 2025. The Skill Academy banner will, however, continue and the College remains committed to offering an industry focused curriculum to underpin the work of the MSIP facility as a manufacturing and assembly innovation site with a focus on sustainable energy and hybrid / green transport.

With the recent approval of planning permission for the Eden Project site in Dundee, the College is stepping up its engagement as a skills and key strategic partner throughout both the design and implementation phases. This includes the designation of the College as the official skills partner and deliverer of apprenticeships and other skills training as the site develops.

The College continues to play a key role within our communities and is integrated fully within both of our local Community Planning Partnerships (CPPs) and economic development forums, including senior College staff chairing both the Angus and Dundee Local Employability Partnerships (LEPS).

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Performance Report (continued)

We continue to lead on the development of the school/college curriculum and infrastructure to deliver on the Developing the Young Workforce (DYW) strategy in our region and continue our senior phase and Foundation Apprenticeship activity with our regional schools.

We make active use of all funding opportunities to support a diverse range of delivery to support both economic and social recovery and the College has been successful in attracting Trust and other funds to support our community focused activities and to continue our pioneering work to reduce child poverty.

Despite the excellent outcomes that the College consistently achieves, and the fantastic opportunities developing within the D&A region, there are significant challenges to be faced. The ongoing ‘flat cash’ funding settlement for the college sector through a period of above target inflation and significant wage pressures has represented significant year on year real terms funding reductions.

With a £2.34 million deficit budget anticipated in 2025/26, future financial forecasting highlights that this will grow to c£16 million cumulative deficit by 2028 if significant action is not taken (or funding uplifts received).

Following on from significant savings plans enacted in 2022 and 2023, a current savings plan of at least £2.5 million in-year is being consulted on. Achieving savings of this level are extremely challenging

D&A College has continued to play a significant national role in lobbying the Scottish Government and SFC to modernise the funding methodology and key approaches adopted in respect of flexibility in operation of the sector. This includes direct engagement within the Tripartite group comprising the sector, Scottish Funding Council and Scottish Government.

This national engagement has included working with the Minister for HE, FE and Veterans to seek to inform response to the Skills Delivery Landscape Review, Review of Qualifications and Assessment, and the Post-school Education, Research and Skills Purpose and Principals work.

The College continues to invest in our infrastructure prioritising capital backlog maintenance projects aligned to the Scottish Funding Council 2017 condition survey and the College’s own 2024 conditions survey which highlights a need for c76million of investment to resolve the RAAC issues within the Kingsway campus and bring all College facilities up to condition B.

In addition to the utilisation of capital maintenance funds, significant additional funds have been utilised to upgrade heating infrastructure – replacement pumps in our in our Kingsway Campus (c£70k) and replacement gas boilers and BMS controls in our Arbroath Campus (c£180k). All of these works have been completed on time and within the allocated budgets.

Investment in our digital infrastructure remains significant, with the trend continuing for digital spend to move from capital to revenue expenditure as the College transitions towards the final stages of our ‘Cloud First’ strategy for digital based systems and services.

Significant developments include the rapid progress of a replacement project for our key student management systems covering student recruitment, student records, and funding. This work represents a very significant ‘root and branch’ change to a major central system and has required

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Performance Report (continued)

additional investment in staff capacity to manage and support the transition alongside review and change to the initial project plan and timeline. The transition continues to progress, with 2025/26 representing the first full year that the full student journey will be managed within the new system.

The College has made excellent progress with implementing its Climate Emergency Action Plan (CEAP) with our 2021 plan signed off in June 2024 and a new updated 2025 – 2030 plan now being implemented. This action plan is aligned to the Scottish Government’s commitment to reduce Scotland’s emissions of all greenhouse gases to net-zero by 2045 and is centred around the five roadmap elements of the Climate Commission and Nous Group’s Climate Action Roadmap for UK FE Colleges.

The five roadmap elements are:

Using the Roadmap elements, we have established a range of objectives and targets for each one that forms the basis of our Climate Emergency Action Plan. This has in turn set out the College’s strategy for reducing carbon emissions over the next 5 years and throughout our Path To Net Zero.

Dundee & Angus College enjoys significant success across a wide range of activities and is regularly recognised nationally through a number of prestigious awards. During 2024/2025 these have included:

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Performance Report (continued)

Purpose and Activities of the College

Dundee & Angus College is a public body constituted under statute and a Scottish charity (SC021188). It was designated a Regional College in November 2013 under the Post-16 Education (Scotland) Act 2013. The constitution and proceedings of the Board of Management are determined by the Further and Higher Education (Scotland) Act 1992, as amended.

The core purpose of the College is the provision of further and higher education in the Dundee and Angus region. It delivers education programmes on a full-time and part-time basis to around 17,000 students annually across three main campuses, one in Arbroath and two in Dundee (Kingsway and Gardyne).

The College’s mission is to generate regional economic growth and social well-being through the provision of skills and education for individuals, employers and the wider community. The College has an excellent reputation locally, nationally and internationally. Maintaining a quality brand is essential to its on-going success, ensuring it continues to attract students and grow external partnerships.

The Board of Management adopted its 2025 ‘More Successful Students’ strategy in 2019, with this strategy focused firmly on enhancing student opportunities, outcomes and success by working with others across our region.

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Performance Report (continued)

Over the past 18 months the Board have been working on an update to our strategic vision, mission and purpose, with the new ‘Our College’ strategy approved in June 2025 ready to be implemented as the previous strategy reaches its conclusion.

The Our College strategy is based around four core outcomes, specifically referencing our students, our staff, our campuses and our impact. These core outcomes are underpinned by twelve strategic priorities (see below) alongside nineteen multi-year metrics to measure achievement.

In order to ensure that it provides educational opportunities that meet the social and economic needs of the region, the College works closely with a number of regional partners, including Dundee City Council, Angus Council, NHS Tayside, Community Planning Partnerships in Dundee and Angus, Abertay University and the University of Dundee.

We have a number of other key stakeholders, including national agencies, for instance the Scottish Funding Council, Scottish Enterprise and Skills Development Scotland, as well as local schools, employers, other colleges, and the local community. We also engage with a range of international partners in the spheres of education and business.

The primary source of funding for the College is its teaching grant from the Scottish Funding Council. The table below outlines the key Priority Outcomes for Dundee and Angus College for 2025/2026. These Priority Outcomes align with the National Performance Framework for Scotland and four key SFC Strategic Priorities 2022 - 2027.

Our Students

  1. Enable Student Success : Enhance student success and satisfaction by creating learning that is inspiring, enabling, engaging and sustainable.

  2. Provide Inclusive Education : Ensure all students, regardless of background, have access to the high-quality education, skills, training and support needed for them to succeed

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Performance Report (continued)

  1. Develop Career Readiness : Equip our students with the confidence, skills, experience, enterprise mindsets and attributes needed to create routes and opportunities for successful careers in their chosen fields.

Our Staff

  1. Champion Professional Development : Continue to enhance the skills, growth and futures of our people through comprehensive and career long professional learning.

  2. Embed Wellbeing and Support : Co-create a supportive work environment that embeds wellbeing and sustainability within our outcomes and enhances the experience of our people.

  3. Role Model Leadership and Culture : Create and encourage a collaborative, proactive and confident, coaching culture for all staff in all roles, that nurtures innovation, ownership, accountability and aspiration.

Our Infrastructure & Campuses

  1. Deliver our Infrastructure Ambitions : Co-create and maintain digitally enabled, sustainable and state-of-the-art facilities and environments that engage staff, students and stakeholders, and support innovative teaching, learning, working and service delivery.

  2. Drive Sustainability : Ensure our campuses and operations are sustainable, energyefficient and deliver our net-zero ambitions.

  3. Culture of Welcome : Make our campuses inclusive, accessible and welcoming for all our students, staff, stakeholders, partners and communities.

Our Impact

  1. Strengthen Community Connections: Deepen our relationships with our internal and external communities by growing partnerships and collaborative projects that deliver mutual benefit and address shared needs and opportunities.

  2. Drive Economic Growth : Contribute to our local and national economies by creating a skilled workforce, supporting local businesses, delivering financial stability to our College and maximising our regional social and economic contribution.

  3. Be Trusted and Respected throughout Scotland : Increase the regional and national reputation and visibility of our College for the benefit of our students, staff and stakeholders.

The College actively mainstreams equality in accordance with the Equality Act 2010 and celebrates the diversity of all people who are directly and indirectly involved in the College. This commitment is reflected in the excellent sector leading outcomes achieved for learners irrespective of protected characteristic.

The College works hard to ensure that all staff, students and other stakeholders are treated equally, regardless of age, disability, family responsibility, marital status, race, colour, ethnicity, nationality, religion or belief, gender, sexual orientation, trade union activity, or unrelated criminal convictions.

In addition to tackling discrimination, the College also supports and fosters good relations between individuals with different characteristics. This includes significant input to the Equally Safe campaign to eradicate gender-based violence and a focus on supporting good mental health and wellbeing for students and staff.

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Performance Report (continued)

Social Matters

One of our strategic pledges is to create thriving communities and this is supported by our focus on seamless access and inclusive learning with the provision of ‘wraparound’ support for the many students that require this intensive level of input.

The College operates a wide range of strategies, policies and approaches to underpin this commitment, including extensive work to address issues such as gender inequality within the curriculum. The College has clear strategies and targets to improve outcomes for carers, care experienced, military veterans and estranged students.

In May 2024 D&A became the first College in Scotland to be recognised as a College of Sanctuary for the learning and services we provide to support refugees and asylum seekers to thrive in their new home. This has been a major exercise to support a growing group of students that have suffered major trauma and threat prior to arriving in the region, with College efforts designed to create a safe and supportive learning environment that encourages cultural and community integration and dispels the myths around forced migration.

Specialist project activity aimed at reducing and eradicating Child Poverty has continued into 2024/25, through multi-year trust funding secured from the Northwood Trust.

This work has engaged with hundreds of disengaged young people, providing a supported pathway through into formal education in partnership with our College Community Collaborative (CCC).

As the work of the CCC has developed, we have expanded opportunities and are working at the heart of a range of community initiatives to offer access to education and support those disenfranchised from learning. This includes work of national significance as a partner within the Linlathen Project in Dundee, working as part of a focused multi agency engagement in the most deprived council ward in the city (and one of the most deprived communities in the UK) to transform the opportunities available to individual residents alongside creating multi-generational cultural change in terms of attitudes to education. The evaluation of this work highlights the positive impact of the College addressing intergenerational poverty.

In response to the emerging cost of living crisis in late summer 2022 the College launched its Thrive with D&A initiative, as previously mentioned, designed to provide students and staff with access to a range of support aimed at helping to offset the impact of rising costs. Working to actively remove the stigma of seeking help or financial support, Thrive with D&A has provided a multi-faceted approach to encourage engagement with the provision of free food, advice, financial support, clothing and toys, events, job opportunities and even Christmas movies.

This work has proven to be hugely beneficial, and over the course of past two years we provided almost 80,000 free portions of soup and 30,000 free breakfasts. This work is supported by the work of our Students’ Association to deliver breakfast clubs and provide free food larders and access to our free Thrive shops on each campus. Thrive is funded through funds from the College plus joint fundraising by students and staff.

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Performance Report (continued)

The Thrive work has been picked up by College Development Network Research and Enhancement Centre as an area of good practice with a Case Study published on the work undertaken. Given the on-going levels of need, the Thrive with D&A work will continue in 2025/2026 with an increased focus on support for students.

The College runs a wide range of services and provision to support current and potential students in their learning journey. Extensive services to promote and support good mental health and wellbeing are provided, including the provision of specialist counselling support and extensive wellbeing activities and advice. Despite the removal of funding for this service the College has opted to maintain this counselling specialism and continue to offer this support to learners.

Our governance codes, D&A Way Leadership Excellence framework and fraud, bribery and corruption policy have strong anti-corruption and anti-bribery provisions, and detailed operating procedures provide the checks and controls necessary to ensure that these commitments are met and evidenced in day-to-day operations.

The College is a Living Wage Employer and provides a wide range of support and benefits for staff.

The College has an up-to-date Modern Slavery statement and procedures and has well established checks in place to avoid engaging with any organisation with serious organised crime connections. Guidance has been issued to staff on spotting and responding to human trafficking.

Guidance and regular Career long professional Development (CLPD) is provided to support the College’s duty of care in respect of its Equalities, Prevent and Safeguarding responsibilities and the College received positive endorsement of these approaches from Education Scotland through its most recent safeguarding review.

Key Risks and Issues

The College identifies risks within its Strategic Risk Register as detailed below on page 36.

The year on year cuts arising from successive flat cash settlements have created significant risks around the future financial sustainability of the college sector and D&A College. This has been clearly recognised within our Strategic Risk Register, with the Financial Strategy and the progress and impact of the resulting major savings plans discussed in detail at each Board and Committee meeting.

Audit Scotland’s Colleges 2025 report highlights the precarious and significantly worsening financial position that the sector faces and makes some clear recommendations in line with the identified need for sustainable funding. This builds upon previous Audit Scotland reports and the recent report published by the Scottish Funding Council Financial Sustainability of Colleges in Scotland 2022-23 to 2027-28 report which highlights that colleges are operating in an extremely tight and rapidly deteriorating financial position resulting in almost all colleges already in deficit positions, with this worsening each year.

Whilst D&A has taken significant action to support its ongoing financial sustainability, the risks in respect of this remain significant and significant savings steps will be required for the foreseeable future to seek to maintain a sustainable operating position.

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Performance Report (continued)

The College (and sector as a whole) are in active dialogue with the Scottish Government to seek to influence in-year and future funding decisions to support short-term financial management and future financial sustainability.

The Board of Management receives regular updates on the management and oversight of key strategic risks

Whilst there are considerable risks, there are also opportunities for the College which are included above as part of the Principal’s statement.

Going Concern

As set out in the Accountability Report which follows this Performance Report, the Board of Management considers that the College has adequate resources and arrangements to ensure the continuation of its functions within the public sector for the foreseeable future.

Performance Summary

The Statement of Comprehensive Income shows an operating deficit for 2024/25 of (£2.0m). However, this includes non-cash items such as depreciation, the potential cost of the support staff job evaluation exercise (not matched by revenue), pension adjustments and non-government capital grants, and if these are excluded there was a deficit of £0.9m after allocation of funding to loan repayments.

After working capital movements there was a net cash outflow from operating activities of (£2.3m), along with investing and financing cash outflows totalling (£0.4m). The total net cash outflow of £2.7m resulted in a closing position of £4.1m.

Student credits are the measure of activity upon which College funding is based, with each credit representing 40 hours of learning for a student (irrespective of subject area, mode of delivery, etc.). Each College in Scotland has an annual credit target that equates to the funding it receives.

During 2024/25 the College successfully delivered student activity of 98,254 credits, aligning within the agreed threshold for its SFC credit target (98,307).

The College’s academic performance was once again strongly positive, with our long-term trends confirming it a consistently high performing college in the sector for both further and higher education.

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PERFORMANCE ANALYSIS

Methodology

Over recent years the Board of Management has developed and refined a series of Board and Committee metrics that it uses to monitor performance, the following metrics are produced for consideration at each Board meeting. These metrics draw on the balanced scorecard methodology and link together a number of data sources into a single high level report which is submitted to each Board meeting. Board papers can be accessed on our website and are published in line with good governance practice. Where appropriate, this report includes comparison with benchmarks, for instance previous year or Regional Outcome Agreements and Related Measurement Plans. A summary of performance on these measures is detailed below.

Measure Comment on 2024/2025
Performance
1. Student Successful Completion Rate(pass rates) See Summarybelow
2. EarlyWithdrawal Rate 0.12%point improvement
3. Further Withdrawal Rate 2.04%point improvement
4. Post Course Destination Success rate 96.4% +1.2%point increase
5. Overall satisfaction score from most recent student
survey		 90% (consistent with 2024)
6. Overall satisfaction score from SFC national student
survey		 98% for FE (+1% on last year)
and 96.8% for HE (+.4% on last
year. National average 95.2% and
93.0% respectively)
7. Forecast credit out-turn Overall in line with target
8. Student Recruitment figures, FT and PT Core target met
9. Employee Engagement and Happiness Indices
(2024)		 Engagement 81%
Happiness 76%
10. Employee Absence Rate(Lost time rate) 2.25%(0.82% improvement)
11. Employee Turnover(non-forced) 10.2%(3.5% increase)
12. Staff Headcount and FTE data On target with managed reduction
2024 to 2025
13. Cash-backed surplus/deficit: year-end forecast v
annual budget		 See financial performance section
14. RIDDOR reportable accidents 2(7 in 2023/24 and 4 in 2022/23)
15. Audits completed vs Planned All completed or on target

The measures provide a high-level indication of College performance, with the detail resting with the relevant Board Committee: Audit & Risk; Finance & Infrastructure; Learning, Teaching & Quality; People, Culture & wellbeing. At these individual Committees further metrics are reviewed to provide a robust overview of real-time College performance and to alert Board members to any potential areas of concern.

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Performance Analysis (continued)

Financial Performance

The following table summarises the key performance metrics contained in the financial statements for the year to July 2025, along with comparatives for the previous year.

Metric 2024/25 2023/24
£000 £000
Total comprehensive income(SCI) 7,209 (8,070)
Consolidated deficit(SCI) (2,035) (3,895)
Underlying operating deficit, before loan repayment
(Note 2)		 (957) (2,840)
Total net cash inflow/(outflow) (Cashflow) (2,701) 1,244
Cash balances(Cashflow) 4,076 6,777
Accumulated reserves(SOFP) 46,645 39,436
Long-term loan outstanding (note 15) 1,366 1,819
Pension liability (note 17) 1,950 2,290
Support Job evaluation liability (note 21) 4,678 4,001
Property,plant & equipment(SOFP, note 12) 74,102 67,791

The consolidated result for the year is a deficit of £2,035k. As explained below, this is effectively a “paper” loss, a consequence of the reclassification of colleges in Scotland as central government bodies. It reflects non-cash expenditure items as well as the cash expenditure supported by the funding related to these non-cash items. If the result is adjusted for non-cash and non-recurring items, the adjusted result shows a deficit of £957k for the year, compared with a deficit of £2,840k the previous year.

The Statement for Comprehensive Income included a £4.001m adjustment in 2023/24 for changes to the accounting treatment for Support Job Evaluation funding, when we created a provision with a corresponding contingent liability. The provision has increased to £4.678m in 2024/25 to reflect the ongoing liability. This is detailed in Note 21 and in the section Technical Impact of National Job Evaluation Funding Change section on page 18 and 19.

Going forward, the College requires to generate an adjusted surplus of £457k in order to meet future annual capital loan repayments. As can be seen from the table, after loan repayment and working capital adjustments, there was a net cash outflow of £2,701k. The loan repayment has a net balance of £1,366k at 31 July 2025, there remains 3 cash repayments due before this liability is discharged, with a final repayment in June 2027.

Reserves at the year-end are £46.645m, an increase of £7,209k, being the value of Total Comprehensive Income.

The total net pension liability has decreased by £340k, as a result of changed assumptions together with unfunded payments made during the year, and now comprises a funded asset reduced to £nil, following the application of an asset ceiling by actuaries, and an unfunded liability of £1,950k.These changes are described in more detail within notes 1, 16 and 17.

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Performance Analysis (continued)

The net book value of fixed assets increased during the year by £6,311k. The depreciation charge of £3,782k is offset by a revaluation increase of £9,039k, additions of £1,178k and disposals of £124k.

Student Outcomes

The College worked closely and positively with the Quality Assurance Agency Scotland (QAA) and SFC under as an active participant in the work to create and roll out the new Tertiary Quality Enhancement Framework (TQEF).

This has included completion of the first annual Self Evaluation and Action Plan (SEAP) for submission to SFC in December 2024, with this plan being identified as one of a small number of good practice examples to be shared with the sector through development arrangements progressed by QAA and the College Development Network (CDN).

Engagement with QAA within their annual quality meeting and with SFC through their OFAM arrangements has confirmed that (more than) satisfactory progress was being achieved around quality engagements and the recruitment, retention, attainment, and progress of learners.

Outcomes across the full range of protected characteristics continue to be positive, with consistently high outcomes achieved for learners with a declared disability, those from identified BAME ethnicities, and those that are Care Experienced or estranged. Outcomes for SIMD10, Care Experienced Learners and Learners with Disabilities are consistently at or around the top performing in Scotland.

Engagement with our twin learner satisfaction surveys has remained very strong, with an increase in responses of almost 1,000 from 2023/24. Both surveys showed very positive results and both continued a 6-year unbroken run of consistently high levels of learner satisfaction.

At 90% in both surveys, student satisfaction within the learning and teaching survey improved by 2 percentage points compared with the previous year. This high level of learner satisfaction is also reflected in the Scottish Funding Council annual survey which shows D&A College students participate well and with a satisfaction score of 98.0% at FE level and 96.8% at HE are significantly more satisfied compared with sector average.

Work to reduce gender segregation within the curriculum and to provide positive opportunities for non-traditional participation within subject areas continues and has remained as a focus for the College with key developments such as the Tay Cities Deal incorporating clear opportunities and enhancement targets for gender engagement within the TCEP and Science Futures projects.

Learner outcomes published in 2025 (academic year 2023/24) were higher than in previous years and remained strong on a comparative basis with much of the sector, especially for full-time higher education learners. This also included outcomes for younger learners (18 – 20) those from areas of multiple deprivation (SIMD10), those with Disabilities, and those from a Care Experienced background. These performance metrics represent a continued strong performance by the College and demonstrate a long-term above average trend of D&A performance.

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Performance Analysis (continued)

Student outcomes for 2024/25 remain provisional at this time but show further improvement across almost all key measures. A summary of D&A provisional performance indicator outcomes for 2024/2025 is outlined below.

Md Successful Outcome Successful Outcome Successful Outcome Successful Outcome Successful Outcome Successful Outcome
oe 19/20 20/21 21/22 22/23 23/24 24/25
All Modes 76.9% 80.3% 72.3% 70.9% 75.4% 77.9
Full Time – All 73.8% 76.5% 72.9% 69.1% 72.2% 75.5
Full Time – FE 72.3% 73.6% 65.2% 67.5% 70.8% 75.4
Full Time – HE 76.5% 81.9% 76.4% 72.4% 74.4% 77.9
Part Time – All 80.3% 84.3% 77.3% 72.4% 79.6% 81.4
Part Time – FE 80.3% 85.2% 77.4% 72.3% 78.1% 80.9
Part Time – HE 80.0% 76.0% 69.9% 73.2% 84.6% 85.6

NB, Outcomes in 2019/20, 2020/21 and 2021/2022 were impacted by COVID-19 and final outcomes were developed under different assessment adaptions and requirements in each of these years. Outcomes noted for 2023/24 and 2024/25 reflect the revised PI guidance issued by SFC and do not include early withdrawals within the final outcome percentage.

Within these outcomes there has been a substantial improvement in outcomes for all learners including part-time learners, particularly at FE level, reflecting significant review and development to our part-time curriculum. This is also reflected in a decrease in learner withdrawals for part-time programmes.

Overall there has been an improvement in learner retention, with this being achieved despite the on-going increase is student support needs (particularly in respect of issues surrounding poor mental health and resilience). Overall retention improved by 2.04%, reversing the decline seen in 2023/24.

Early retention was improved by a smaller margin (0.12%) reflecting the already high levels of early retention seen in previous years.

Post course progression and success has improved year to year, with 96.4% of full-time College learners achieving a positive destination (employment or further study) three to six months after completing their course. This represents a 1.4% improvement from 2023.

The proportion of learners progressing with advanced standing (2023/24 cohort) has remained relatively static.

Despite the financial challenges faced by the College, alongside the post-pandemic impact on learner mental health and support needs, the high levels of learner attainment and satisfaction outlined above, with the high levels of post course progression and articulation with advanced standing, identify D&A as a hugely successful College with outcomes for learners that are consistently above national averages.

18

Performance Analysis (continued)

Fair Work

Details of activities, arrangements and outcomes underpinning our commitment to the fair work agenda and principles are summarised within the staff report below (pages 40 – 45) and within our published Fair Work First Statement on the College website.

Technical Impact of National Job Evaluation Funding Change

Before 2023/24 the College financial statements included a creditor and a corresponding debtor for funds held by the Scottish Funding Council (SFC) in respect of the anticipated costs associated with the implementation of a national middle management and support staff job evaluation exercise for colleges. The corresponding creditor and debtor amounts were £3.7m in 2022/23.

Whilst these funds were reported in the College financial statements, SFC held this funding (provided by the Scottish Government) in reserve. The funds held by SFC were returned to Scottish Government in 2023.

This change in approach between SFC and the Scottish Government affected the technical accounting treatment of the funds within the College financial statements from 2023/24, with this showing as a negative impact (provision) of £4.0m within the 2023/24 financial statements and a corresponding note in the accounts for a contingent asset. The provision has increased to £4.678m in 2024/25 to reflect the ongoing liability. This gives the impression of a £4.678m ‘loss’ to the College and it is important to note that this is a technical accounting change only and does not reflect the underlying financial performance or cash position of the College.

This is a national sector wide change and the Scottish Government has confirmed that responsibility for job evaluation funding commitments rests with it until the job evaluation process is complete. Further information is available in the notes to the accounts (note 21).

Climate Change (Scotland) Act 2009

The Climate Change (Scotland) Act 2009 set outs measures adopted by the Scottish Government to reduce emissions in Scotland by at least 80% by 2050. In 2015, an Order was introduced requiring all designated Major Players (of which Dundee & Angus College is one) to submit an annual report to the Sustainable Scotland Network detailing compliance with the climate change duties imposed by the Act. The information returned by the College is compiled into a national analysis report, published annually and superseding the prior requirement for public bodies to publish individual sustainability reports.

Further information on the Act, along with copies of prior year national reports, can be found here.

Adjusted Operating Position

To enable a clearer understanding of the College’s financial performance, the consolidated deficit is adjusted below for certain specified items. These adjustments are prescriptive, and include noncash charges, capital grants recognised as income, and other commitments funded from revenue, but which are excluded from the Consolidated Statement of Comprehensive Income.

19

Performance Analysis (continued)

Adjusted operating position
Revenue 2024/25
£000		 2023/24
£000
(Deficit) before other gains and
losses		 (2,012) (3,895)
Add back:
Depreciation (Note 12) (net of
Deferred Capital Grant
release (Note 3 and note 5))
Exceptional non-restructuring
costs – Impairment
Non-cash pension adjustment –
Net service cost (Note 9)
Non-cash pension adjustment –
Net interest cost (note 16)
Non-cash pension adjustment –
Early retirement provision
Costs of middle management job
evaluation exercise not matched
byrevenue(SCI)		 1,369
-
(323)
51
-
677		 1,767
-
(67)
63
-
4,001
Deduct:
Non-Government capital grants
(Note 8)
Revenue funding allocated to loan
repayments(Note 15)		 -
-		 -
-
Adjusted operating
(deficit)/surplus		 238 1,869

Creditor Payment Policy

The Late Payment of Commercial Debts (Interest) Act 1998, which came into force on 1 November 1998, requires the College, in the absence of agreement to the contrary, to make payments to suppliers within 30 days of either the provision of goods or services or the date on which the invoice was received. During the financial year to 31 July 2025, the College incurred penalty and interest charges of £1,622 in respect of late payment.

The Scottish Government is committed to supporting business by paying bills more quickly, with the intention to achieve payment of all undisputed invoices within 10 working days.

The College is committed to the principles of The Better Payment Practice Code by processing suppliers’ invoices for payment without unnecessary delay and by settling them in a timely manner. Consequently, in the absence of any alternative arrangements, all suppliers are placed on immediate payment terms. In 2024/25 the average credit taken was 5 days.

Simon Hewitt Principal

20

ACCOUNTABILITY REPORT

The Accountability Report comprises the Corporate Governance Report and the Remuneration and Staff Report and is signed by the Chair and the Principal.

Corporate Governance Report

The Corporate Governance Report comprises the following sections:

Directors’ Report

Dundee & Angus College’s Board of Management is constituted in accordance with the requirements of the Further and Higher Education (Scotland) Act, 1992 and complies with further requirements as set out in the Further and Higher Education (Scotland) Act 2005 and the Post-16 Education (Scotland) Act 2013.

The Board comprises lay members, employees and two student representatives. The roles of the Board Chair and Vice Chair are separated from the role of the College Principal, who (as Chief Executive) holds the only executive role on the Board. In line with good governance practice, the Board has appointed one of its members as ‘Senior Independent Member’ to whom any member of the board can refer to seek advice or to raise any matters of concern.

A list of Board Members for 2024/25 is included on pages 22 and 23. Board Members’ Register of Interests is available via the enclosed link on our website. The Board has five standing committees, the roles of which are explained at pages 28 and 29.

Board of Management Board of Management
Audit & Risk Finance &
Infrastructure
(formerly
Finance &
Property)		 People, Culture
and Wellbeing
(formerly HR &
Development)		 Learning, Teaching and
Quality		 Chairs

The Executive Leadership Team is responsible for the day-to-day management of Dundee and Angus College’s activities and operations. A list of Executive Team members is included below:

Name Designation
Simon Hewitt Principal
Steven Taylor Vice Principal Support Services and Operations
Julie Grace Vice Principal Curriculum and Partnerships

21

Accountability Report (continued)

DUNDEE & ANGUS COLLEGE - Board of Management Membership – 1 August 2024 – 31 July 2025

Appointed Term Ends Status of Appointment Profession/Specialism Chairs
Laurie O’Donnell
Regional Chair		 July 2022 10/07/26 Scottish Government
Appointment		 Education, Management & Digital Technologies Board of Management
Chairs Committee
Helen Honeyman January 2019 31/12/26 Ordinary Member Risk, Governance, HR Management Audit & Risk
Committee & Board
Vice Chair (from Jun
2025)
Donald Mackenzie April 2019 31/03/27 Ordinary Member HR & OD, Corporate Communications
Management		 People, Culture &
WellbeingCommittee
Neil Lowden January 2019 31/12/26 Ordinary Member Educational Management, Learning & Teaching,
Educational Policy		 Learning, Teaching &
QualityCommittee
Brian Lawrie May 2022 31/04/26 Ordinary Member Finance and Public Sector Management Chair of Finance &
Infrastructure
Committee (from May
2025)
Jackie Buchanan February 2023 31/01/27 Ordinary Member Legal, Governance, Public Sector Management
Carri Cusick April 2023 30/04/27 Ordinary Member Economic Development, Commercial
Management, Enterprise
Kelly McIntosh February 2025 31/01/29 Ordinary Member
(previously co-opted to
LT&Q)		 Public Service Management
Ged Bell September
2024		 31/08/2028 Ordinary Member ICT/Digital, Public Sector Management
Robert Young February 2025 31/01/29 Ordinary Member Private Sector Management,
Infrastructure/Engineering
Kirstin Marsh June 2025 31/05/29 Ordinary Member Government Strategy, Funding, Infrastructure &
Economic Development

22

Accountability Report (continued)

Appointed Term Ends Status of Appointment Profession/Specialism Chairs
Colin Smith June 2025 31/05/29 Ordinary Member Infrastructure & Estates Leadership, Senior HE
Management
Brian Mooney June 2025 31/05/29 Ordinary Member Business Consultancy & Turnarounds, National
Project Leadership
Simon Hewitt August 2020 - Principal Principal
Derek Smith April 2023 31/03/27 Teaching Staff Member Teaching Staff
Matthew Beattie Nov 2023 Resigned
18/08/25		 Support Staff Member Support Staff
Stephen Oakley April 2024 29/02/28 Academic Trade Union
Nominated Member		 Lecturer
Richard Gordon Nhi ff i Cyber Security Engineer
Feb 2025 31/01/29 on-teacng sta unon
nominated member
Adele Lawrence March 2024 31/07/26 Student Member Students’ Association Nominee
Kara Ramsay August 2024 31/07/25 Student Member Students’ Association Nominee
Connor Pithie August 2025 31/07/26 Student Member Students’ Association Nominee
Margo Williamson June 2021 Term ended
31/05/25		 Ordinary Member Management, Education Board of Management
Vice Chair until May
2025
Donna Fordyce April 2017 Term ended
30/04/25		 Ordinary Member Economic Development, Enterprise, Fisheries,
Retail Management		 Finance &
Infrastructure
Committee Chair until
April 2025
Sally Middleton June 2021 Resigned
29/11/24		 Ordinary Member HE Learning & Teaching, Management, Access,
and Articulation
Roy McLellan May 2022 Resigned
31/12/24		 Ordinary Member Enterprise and Corporate Management
Daniel Rosie May 2023 Resigned
03/12/2024		 Ordinary Member Marketing, Promotions, PR, Enterprise,
Management

23

Accountability Report (continued)

Appointed Term Ends Status of Appointment Profession/Specialism Chairs
Donna Fordyce August 2025 31/12/26 Coopted member Finance
& Infrastructure Committee		 Economic Development, Enterprise, Fisheries,
Retail Management
Sally Middleton August 2025 31/12/26 Coopted member Learning,
Teaching & Quality
Committee		 HE Learning & Teaching, Management, Access,
and Articulation
Derek Stewart August 2025 31/12/26 Coopted member Finance
& Infrastructure Committee		 HE Learning & Teaching, Management,
Infrastructure

24

Accountability Report (continued)

Statement of the Board of Management’s Responsibilities

In accordance with the Further and Higher Education (Scotland) Act, 1992 the Board of Management is responsible for the development and operational oversight of College strategy and outcomes. This includes the creation of future strategy, the educational character of the College and administration and management of the College’s affairs, including approving the Regional Outcome Agreement (Priority Outcomes are referenced on pages 8-9) and ensuring an effective system of internal control in respect of activities, expenditures and outcomes. As a part of these requirements, the Board of Management is required to present audited financial statements for each financial year.

In understanding these financial statements, the following Board of Management responsibilities in respect of the proper use of College funds is important.

The Board of Management maintains a rolling five-year financial strategy that aids decision making and oversight in respect of financial sustainability, whilst informing short and medium term financial planning and control. This strategy was updated in April 2022.

The Board of Management is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the College. This ensures that financial statements are fully accurate and meet the requirements of the Further and Higher Education (Scotland) Acts (1992 and 2005), the Statement of Recommended Practice on Accounting for Further and Higher Education, the Government Financial Reporting Manual (FReM) issued by HM Treasury and other relevant accounting standards.

Within the terms and conditions of the Financial Memorandum agreed between the College and the Scottish Funding Council, the Board of Management approves financial statements for each financial year that give a true and fair view of the College’s state of affairs and of the surplus or deficit and cash flows for that year.

The Principal provides a signed Certificate of Assurance each year, confirming that a review of the internal control arrangements of the College has been undertaken and that these controls have been, and are, working well. This Certificate of Assurance supports the Accountable Officer for the college sector (the Scottish Funding Council Chief Executive) to provide a governance certificate of assurance covering all colleges to the Principal Accountable Officer of the Scottish Government.

In approving the annual financial statements, the Board of Management has ensured that:

25

Accountability Report (continued)

The Board of Management has taken reasonable steps to:

The key elements of the College’s system of internal financial control that discharge the responsibilities set out above include the following:

26

Accountability Report (continued)

Governance Statement

Introduction

Dundee & Angus College is committed to maintaining and delivering good practice in all aspects of corporate governance. This governance statement is written to assist the reader of the financial statements understand how these principles have been applied.

This governance statement supplements the information provided in the financial statements. It sets out the governance structures, risk management and internal control processes that have been operating in the College in the year to 31 July 2025 and reports the Board’s assessment of the effectiveness of these arrangements.

Statement of Compliance

The College complies in full with all the principles and requirements of the 2022 Code of Governance for Scottish Colleges with the exception of the role of the Secretary to the Board. The Code of Good Governance states: “The board secretary may be a member of the senior management team in their board secretary capacity, but they cannot hold any other senior management team position at the same time.”

The Board of Management have appointed the Vice Principal Support Services and Operations as Secretary to the Board, who reports directly to the Chair in relation to their Board Secretary duties, in order to prevent any conflicts of interest. The Board has been satisfied with this arrangement, and the independence and appropriateness of the governance role fulfilled by the Board Secretary. Following a review the Board is working to appoint a Board Secretary who is not a member of the College senior management team by January 2026.

Governing Body and Governance Structure

The Board of Management operates a formal structure of Board and Committee meetings (referenced on pages 28 and 29), supported by clear agendas, minutes and supporting papers, reports and information, all of which underpins good planning, decision making and governance. Agendas and cycles of reporting have been developed over time to ensure that the Board and Committees can review and monitor the College’s effectiveness, progress and performance against key priorities.

The Board actively evaluates its own effectiveness and contribution to the College through a series of indicators that reflect its impact on the College as a whole. Each evaluation is supported by a development plan of improvement actions that are recorded and closed out on a rolling basis.

27

Accountability Report (continued)

In accordance with the requirements of the Code of Good Governance for Scottish Colleges, Board evaluation arrangements are supplemented every three to five years by a comprehensive Externally Facilitated Evaluation of Board Effectiveness with a resulting development plan. An external evaluation was undertaken in autumn 2024 and approved by the Board in December 2024 and submitted to the Scottish Funding Council.

The Board has five Standing Committees, all of which are formally constituted with Terms of Reference, as delegated by the Board of Management.

A lay member of the Board chairs all the Committees, with each also appointing a Vice Chair to support in the effective operation of Committee business. The Board and Committees met four times per annum and during 2024/25 these were undertaken as in-person meetings with an online attendance option.

A list of Committee Members for 2024/25 is included on pages 22 to 24.

The Chairs’ Committee met twice in 2024/25 to inform the future work and development of the Board and to consider arrangements around matters of College strategy.

As a part of its remit, this Committee also operates as ‘Nominations Committee’ undertaking all steps necessary to identify high quality candidates to fill board vacancies in line with the Ministerial Code for Appointments.

The Chairs’ Committee has delegated authority from the Board to consider and determine salaries and conditions of service for members of the College Executive and Senior Leadership Team and has an agreed remuneration strategy in place for the consideration of senior post holder salaries. When operating as Remuneration Committee the Committee is chaired by the Vice Chair or other Committee Chair.

The Audit & Risk Committee meets with the College’s external and internal auditors in attendance. The Committee considers detailed reports together with recommendations for the improvement of the College’s systems of internal control and management’s responses and implementation plans. It also receives and considers reports from the Scottish Funding Council or other government departments as they affect the College’s business and monitors adherence to the regulatory requirements.

During 2024/25 the Committee has considered and monitored key actions arising from the Strategic Risk Register and annual Risk and Maturity Report on cyber security. The Audit & Risk Committee also undertook oversight of risk arrangements arising from the ‘red’ financial security risk arising as a result of funding cuts.

The Finance & Infrastructure Committee (formerly Finance & Property) oversees the preparation of a multi-year financial strategy for approval by the Board and informs and approves actions required to ensure financial sustainability. This committee also plays an important role in overseeing and approving procurement activities (within designated thresholds).

28

Accountability Report (continued)

In consultation with other Committees, it recommends to the Board of Management the College’s annual revenue and capital budgets and monitors performance in relation to the approved budgets. It reviews the effectiveness of financial management and monitors financial controls, ensuring appropriateness of and compliance with the Financial Regulations.

This Committee was renamed as the Finance & Infrastructure Committee in June 2025.

The People, Culture & Wellbeing Committee (formerly Human Resources & Development) has overall responsibility for the direction and oversight of all Human Resources matters relating to the function of the Board of Management as employer of the College’s staff. It oversees the development and implementation of the People Strategy and Workforce Plan, ensures compliance with employment legislation, considers a suite of staff-related metrics, and oversees Health & Safety matters on behalf of the Board.

During 2024/25, this has included input to the revised Workforce Plan and consideration of the staffing impacts and good practice approaches around the savings plan and structure changes.

This Committee was renamed as the People, Culture & Wellbeing Committee in June 2025.

The Learning, Teaching & Quality Committee has overall responsibility for monitoring the direction and performance of learning and teaching, and the quality of the learners’ experience at the College. It oversees significant developments in the College curriculum and plays a key role in promoting the student voice, ensuring that the Board’s legal responsibilities with regard to the Students Association are met.

During 2024/25 the Committee has received detailed presentations on key aspects of College activity, including enhancement in the Animals, Land and Environment and Art & Design curriculums plus developments in support for learners and staff as part of the Changing Learners project.

In line with good governance practice, details of discussions held, alongside feedback from the relevant Committee Chair on the activities of each Committee are shared with all Board members and are raised as a standing item at each full meeting of the Board of Management.

Given the financial challenges facing the sector and College, a copy of the quarterly management accounts are included within each set of Board meeting papers for information. Board and Committee agendas, minutes and papers are published on the College website and Board Members receive a copy of the most recent Management Accounts at each meeting.

All current Board members have received clear induction into their roles from the Chair and Board Secretary and have attended comprehensive Board member induction development session provided by the College. In addition, all Board members attend Board member induction and/or specialist training provided on a sector basis by College Development Network.

All Board members engage in an annual appraisal process conducted by the Chair of the Board. The Chair receives two appraisals, one conducted by the Vice Chair and one conducted by a senior official from the Scottish Government. Board member feedback provides clear information to inform individual and collective evaluation and action planning.

29

Accountability Report (continued)

A Strategic planning and development event in October 2024 was used to engage board members in reviewing and setting the Boards risk appetite and to receive an update directly from Audit Scotland on sector funding and workforce planning for the Scottish public sector.

Significant Board input has been focused on the development of the range of strategic opportunities arising through Tay Cities whilst recent focus has been on the governance requirements surrounding the progression of savings plans and major infrastructure project development.

30

Accountability Report (continued)

DUNDEE & ANGUS COLLEGE - BOM & Committee Attendance Record – 1 August 2024 – 31 July 2025

Member’s Name Board of
Management		 Audit & Risk
Committee		 Finance & Property
Committee		 HR & Development
Committee		 Learning, Teaching &
Quality Committee
Laurie O’Donnell 4/4 2/2 (Observer) 3/4 1/1 (Observer) 3/4
Margo Williamson 3/3 3/3 1/3
Donna Fordyce 1/3 1/4 1/3 1/3
Helen Honeyman 3/4 4/4 3/4
Donald Mackenzie 3/4 1/4 3/3
Neil Lowden 3/4 1/3 4/4
Stephen Oakley 3/4 4/4 2/3 4/4
Sally Middleton 0/2 1/2 1/2
Brian Lawrie 4/4 2/2 (Observer) 4/4 3/3
Roy McLellan 1/2 0/2 0/2
Jackie Buchanan 1/4 1/4 1/3
Carri Cusick 1/4 3/4 2/3
Daniel Rosie 0/2 0/2 1/1
Simon Hewitt 4/4 3/4 2/3 4/4
Derek Smith 4/4 4/4 3/4 3/4
Matthew Beattie 4/4 3/4 4/4 3/3
Adele Lawrence 4/4 2/4
Connor Pithie 1/1
Kelly McIntosh 1/2 1/2 3/4
Ged Bell 4/4 4/4 4/4
Kara Ramsay 4/4 4/4
Kirstin Marsh 1/1

31

Accountability Report (continued)

Member’s Name Board of
Management		 Audit & Risk
Committee		 Finance & Property
Committee		 HR & Development
Committee		 Learning, Teaching &
Quality Committee
Colin Smith 1/1
Robert Young 2/2 2/2 1/2
Richard Gordon 2/2 2/2 2/2
Brian Mooney 1/1

32

Accountability Report (continued)

Corporate Strategy

The Board of Management has responsibility for the on-going strategic direction of the College, for the approval of major developments and for the receipt of regular reports from members of the College Executive on the day-to-day operations of its business.

In respect of its strategic and development responsibilities, each year the Board of Management holds strategic development events jointly with the College Executive Leadership and Senior Leadership teams. These events also draw regularly on senior input from Scottish Government, educational and economic development agencies and other expertise. Where possible, the timing of events is arranged to facilitate Board Members’ input to the College’s future strategic and operational planning.

During 2024/25, these activities focused significantly on progress towards completion of the 2025 strategy and development of the new Our College strategy for 2025 – 2030.

Board’s Statement on Internal Control

The Board of Management takes its responsibilities for internal control and for reviewing its effectiveness very seriously. These systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Board of Management provides strong leadership within a framework of effective controls that enable risk to be assessed and managed. Through the operation of the Board and each Board Committee, Board members monitor, challenge and oversee risk management within the College as a whole. Within all of these arrangements it is the responsibility of the Board of Management to:

The Board of Management has delegated day-to-day responsibility to the Principal (Chief Executive) for maintaining a sound system of internal control that reflects the needs of good risk management and supports the achievement of the Colleges policies, aims and objectives.

33

Accountability Report (continued)

The Board operates a clear scheme of delegation and financial procedures that strengthen and inform internal control arrangements. These are reviewed annually, and work has continued during 2024/25 to embed Board visibility and oversight of major procurement spend and contracts. Financial Regulations were revised during 2024/25 to better align financial responsibilities and delegated thresholds with day-to-day management and leadership responsibilities.

In response to the developing situation at the University of Dundee the College has undertaken its own evaluation and action plan on financial governance and reporting. This plan has been discussed at the Finance & Infrastructure and Audit & Risk Committees as well as the full Board. The plan summarises the College approaches to the key areas where it has been identified that failings occurred at the University and also outlines College practice in relation to the lessons learned check list created by Professor Gillies as part of the independent review of University financial governance. The College evaluation and action plan will continue to be monitored and action taken as further lessons emerge from the university situation.

The Board of Management and each of the Committees actively monitors key areas of risk, seeking updates through the Executive Leadership Team and the Audit & Risk Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting on exceptions or issues.

Henderson loggie were reappointed for a period of 3 years (with an extension option) as the College’s Internal Auditors following a procurement exercise. The new appointment is effective from 1 October 2025.

The Audit & Risk Committee also receive regular reports from the College’s Internal and External Auditors and the following provides a summary of current progress in respect of audit recommendations up to 31 August 2025.

Number of
Recommendations
(& PriorityGrades)		 Number of
Recommendations
(& PriorityGrades)		 Number of
Recommendations
(& PriorityGrades)		 Recommendat
ions
Outstanding
Audit Area Report Grades 1 2 3 0
Procurement & Creditors(May2024) Requires Improvement 9 0
Sports Centre Review NA 7 0
Payroll Good 0 0
Staff Development Good 0 0
Student ActivityData(2023/24) Audit opinion unqualified 3 0
Student Support Funds(2023/24) Audit opinion unqualified 1 0
Total - 17 3 0

Good progress has been made in respect of the closing out of audit recommendations and there are no outstanding actions from previous years’ audits. The College’s Internal Auditors reported that the College has made good progress in implementing the identified recommendations.

* Report Grades

34

Accountability Report (continued)

** Action Grades

Priority 1 Issue subjecting the College to material risk and which requires to be brought to the attention of management and the Audit & Risk Committee. Priority 2 Issue subjecting the College to significant risk and which should be addressed by management Priority 3 Matters subjecting the College to minor risk or which, if addressed, will enhance efficiency and effectiveness.

The Internal Audit opinion for the work undertaken in 2024/25 is that the College has adequate and effective arrangements for risk management, control and governance. Proper arrangements are in place to promote and secure Value for Money.

The College operates a Strategic Risk Register, which identifies the most significant risks to the College. Specific risks are allocated to Committees for regular review and consideration with any proposed changes presented to the Audit & Risk Committee for approval. This Strategic Risk Register is discussed and approved at every meeting of the Audit & Risk Committee and is discussed bi-annually at the Board of Management.

The Strategic Risk Register has been subject to additional review during 2024/25 as part of the outcomes an internal audit on arrangements for management of risk and following on from the review and resetting of the Board of Management risk appetite in late 2024. This includes the introduction of minor and moderate categories for low risk elements.

The following table sets out the strategic risks for which the underlying risk has been scored as “Major” or “Fundamental”. It records the residual risk, with three risks shown as “Significant”, following the mitigating actions that have been taken. Two risks (Financial Sustainability and Infrastructure Investment) remain as “Major” post mitigation, reflecting the risk arising as a result of the long-term impact of ‘flat cash’ funding for the sector and the lack of investment required to improve the Kingsway and Arbroath campuses.

Where any post-mitigation risk remains as “Major” or above, a specific report on actions being taken is presented to each meeting of the Audit & Risk Committee.

Risk Before Mitigation After
Mitigation
1.1 Failure of College strategy to meet the needs of the
D&A Region and/or nationalpriorities		 Major Moderate
2.2 Failure to achieve institutional sustainability Major Major
2.3 National outcomes on salaries and conditions of
service outstripabilitytopay		 Major Significant
2.6 Demands of capital developments / maintenance
impacts on financial sustainability or delivery of
learningand/or services		 Major Significant
3.3 Legal actions; serious accident; incident or
civil/criminal breach		 Major Moderate
3.4 Failure to meet the aspirational standards in respect
of the health, safety, wellbeing and development of
staff and students		 Major Moderate

35

Accountability Report (continued)

Risk Before Mitigation After
Mitigation
3.6 National bargaining outcomes impact adversely on
College operations, activityand flexibility		 Major Significant
3.7 Industrial Relations Problems Major Moderate
3.8 Breach of data security/ dataprotection # Major Moderate
4.5 Lack of investment in ageing / beyond serviceable
life infrastructure (inc RAAC, Asbestos and M&E
failure concerns) impacts on financial sustainability
and/or deliveryof learningand/or services		 Major Major

Key to Risk Estimation/Score based on scale of 1 – 5 for impact/likelihood: Blue (1-3) = Minor Risk; Green (4 – 8) = Moderate Amber (9-15) = Significant Risk; Red (16-20) = Major Risk; Purple, (>21 - 25) = Fundamental Risk. Board Risk Appetite for the utilised risk categories is assessed as Open (based on the UK Treasury Orange book criteria).

There have been no significant lapses of data security and no reportable personal data-related incidents reported to the Information Commissioner’s Office during the reporting period.

The College participates in the National Fraud Initiative (NFI), which is a data-matching exercise led by Audit Scotland to aid the detection of fraudulent payments. The exercise undertaken during 2024/2025 did not identify any errors or fraud. The next exercise will be undertaken during 2026/2027.

As a key step in assuring the appropriate oversight of College systems and risks, the Audit & Risk Committee produces a draft annual report that is discussed and approved by the Audit & Risk Committee prior to further discussion and approval by full Board. This report summarises work reviewed by the Committee and confirms internal and external audit assurances in respect of the adequacy and effectiveness of internal control, the effectiveness of financial controls and the delivery of internal audit plans in line with relevant internal audit standards. In line with other Board papers, this report is publicly available on the College website.

As an addition to these arrangements the Audit & Risk Committee also prepared an Audit Assurance Response in respect of a standard series of questions and assurances requested by the College auditors. This assurance response was approved under delegated authority by the Chair of the Audit & Risk Committee and provides a summary of how the Board minimises risk and assures itself in respect of key elements of the international audit standards.

Internal and external audit representatives meet annually with members of the Audit Committee without senior members of College staff present. This allows an opportunity for any concerns or issues to be raised and for Audit Committee members to seek appropriate assurances.

During 2024/25 a number of factors impacted on the final sign off of the annual accounts, with this being delayed to March 2025. A lessons learned review was undertaken in spring 2025 with an action plan agreed on steps to be taken to avoid reoccurrence or delay to future accounts sign-off.

Significant Control Issues/Weaknesses

In completing this governance statement there have been no exceptions or issues raised for inclusion by internal or external auditors in respect of significant control issues/weaknesses.

36

Accountability Report (continued)

Going Concern

The Board of Management considers that the College has adequate resources and arrangements to ensure the continuation of its functions within the public sector for the foreseeable future.

Conclusion

The Board of Management is of the view that there is an ongoing process for identifying, evaluating and managing the institution’s significant risks that have been in place for the period ended 31 July 2025 up to the date of approval of the annual reports and accounts. This process is regularly reviewed by the Board of Management and accords with the internal control guidance as applicable to the further education sector.

37

Remuneration and Staff Report

The sections marked * in this Remuneration Report have been audited by Forvis Mazars LLP, external auditors. The other sections of the Remuneration Report were reviewed by Forvis Mazars LLP to ensure that they were consistent with the financial statements.

Remuneration Policy

Annually the remuneration of the Principal and Executive Team is the subject of a discussion at the Chairs’ Committee – which serves as a Remuneration Committee.

*Remuneration including salary and pension entitlements

The following tables provide detail of the remuneration and pension interests of senior management:

year ended 31 July 2025 year ended 31 July 2025 year ended 31 July 2025 year ended 31 July year ended 31 July 2024
Name Salary Band
£000		 Pension
Benefit
£000		 Band
Total
£000		 Salary Band
£000		 Pension
Benefit
£000		 Band
Total
£000
Laurie O’Donnell 15-20 0 15-20 15-20 0 15-20
Simon Hewitt 130-135 0 130-135 125-130 0 125-130
Steven Taylor 100-105 0 100-105 95-100 0 95-100
Julie Grace 100-105 0 100-105 95-100 0 95-100

Post titles are provided on pages 21 and 22

Median Remuneration

Colleges have been required by the Government Financial Reporting Manual (FReM) to disclose the relationships between the remuneration of the highest paid official and the median remuneration of their workforce and the range of staff remuneration. The 2021-22 FReM introduced new requirements around disclosures of 25[th] and 75[th] percentile pay ratios, their comparison to the remuneration of the College’s highest paid official, percentage changes from previous year and explanation of any changes:

*Range of workforce remuneration:- 2024-25 2023-24 Change
£ £
%
Staff Average (salary & allowances) 39,309 36,009 9.2%
Highest paid official remuneration 130k-135k 125k-130k 3.8%
Median (total pay and benefits) 42,128 39,264 7.3%
Median (salary only) 42,128 39,264 7.3%
Ratio 3.1 3.2 -3.1%
25thpercentile (total pay and benefits) 27,734 26,234 5.7%
25thpercentile (salary only) 27,734 26,234 5.7%
Ratio* 4.8 4.9 -2.0%
75thpercentile (total pay and benefits) 48,357 43,357 11.5%
75thpercentile (salary only) 48,357 43,357 11.5%
Ratio 2.7 2.9 -6.9%

38

The banded remuneration of the highest paid official in the organisation in the financial year 2024-25 was £130,000-£135,000 (2023-24: £125,000-£130,000). This was 3.1 times (2023-24: 3.2 times) the median remuneration of the workforce which in the financial year 2024-25 was £42,128 (2023-24 £39,264). The lowest paid employee salary was £22,932 (2023-24 £21,840).

Changes from prior year mainly reflects the implementation of 2 years Staff pay awards during the year.

Accrued Pension Benefits

Pension benefits for teaching staff are provided through the Scottish Teacher’s Superannuation Scheme (STSS), a defined benefit scheme, which is notionally funded and contracted out of State Earnings-Related Pension Scheme. The Pension Benefit in the above tables does not represent the cash value of pension contributions made in the year. It is calculated as the real increase in pension multiplied by 20, plus the real increase in any lump sum, less contributions made by the member, as required by FReM issued by HM Treasury.

STSS is provided by the Scottish Public Pensions Agency. It remained a final salary (Legacy) pension scheme for protected members only and since 1 April 2015 has been a Career Average Revalued Earnings (CARE) scheme for the majority of members. However, from 1 April 2022 all members retrospectively transferred to the 2015 CARE scheme and the intervening period becomes a Remedy period providing options for eligible members upon retirement.

Non-teaching staff are enrolled into the Local Government Pension Scheme (LGPS). Benefits for all members of this scheme are now provided under CARE arrangements since transition on 1 April 2016. Contribution rates for both schemes are set annually for all employees and can be found in Note 16.

There is no longer any automatic entitlement to a lump sum. STSS members may opt to give up (commute) pension for lump sum up to the limit set by the Finance Act 2004. LGPS members can access pension under new pension release rules introduced in April 2015.

*Senior Officials Pension

Pension benefits are provided to senior officials on the same basis as all other staff. The accrued pension benefits for senior officials are set out in the table below, together with the pension contributions made by the College. All are members of the STSS scheme.

Name Accrued pension at
pension age at
31 July 2025		 Accrued lump sum at
pension age at
31 July 2025		 Real increase in
pension 1 August
2024 to 31 July 2025		 Real increase in lump
sum 1 August 2024 to
31 July 2025		 CETV at 31 July 2025 CETV at 31 July 2024 Real increase in
CETV
£000 £000 £000 £000 £000 £000 £000
Simon Hewitt 40-45 0-5 2.5- 5 0-2.5 556 494 62
Steven Taylor 65-70 0-5 5-7.5 0-2.5 1,192 1,055 137
Julie Grace 60-65 0-5 5-7.5 0-2.5 984 870 114

39

Cash Equivalent Transfer Value (CETV)

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time.

The value of the accrued pension benefits has been calculated on the basis of the age at which the person will first become entitled to receive a pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum, and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total Local Government service and not just their current appointment.

In considering the accrued pension benefits figures, the following contextual information should be taken into account:

Real Increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Staff Report

During the year to 31 July 2024 the College employed 636 full-time equivalent staff. At 31 July 2025 the staff headcount was 960 comprising of 624 females and 336 males.

Full disclosure of staff costs of £36.388m is given in Note 9 to the Accounts.

Disclosure of agency staff costs of £353k is given in Note 11. Other than individuals engaged under a shared service agreement with Advanced Procurement for Universities and Colleges, all amounts are paid for temporary staff on an ad hoc basis to cover staff absence or to obtain specialisms not available from permanent staff.

Working time lost through sickness was 3.75%, marking a return to similar absence levels to the preCOVID period. At an average of 6.1 days per annum this rate is significantly below the September CIPD reported UK average staff absence rate of 9.4 days.

Staff Turnover (non-forced) is sitting at 10.45%, consistent with the rate in 2023/24 and remaining low by sector and UK standards (CIPD estimates UK Education staff turnover at 16.1%).

Reflecting the financial position of the whole college sector, overall staff numbers have declined yearon-year, with this trend set to continue for the foreseeable future. Given the continuing flat cash funding

40

model, the College is again embarked on a major savings exercise with a target to reduce the 2025/26 budget by a minimum of £2.5 million through a combination of curriculum and service reductions.

Steps are in place to communicate the background and rationale for the saving being proposed and active steps are being taken to involve staff in proposing alternatives alongside campaigning for additional funds. This work will continue throughout 2025/26 and it is anticipated may be necessary in future years should funding levels fail to increase.

As part of on-going service review and savings measures the College took the decision in May 2025 to cease the commercial operation of the Gardyne Sports Centre and to close the swimming pool. These changes met with some resistance from customers but were necessary given the financial subsidy required to support these operations. A decision was also made to cease the commercial operation of the Service Design Academy, with this transferring to a new employee owned organisation. Following the decision of Gardyne Theatre Limited to cease operations, the College will assume operating responsibility for the Gardyne Theatre from January 2026 onwards.

Significant developments continue to be made in the use of Artificial Intelligence, Power Automate and workflows, and developments have incorporated improved data use plus a focus on underpinning culture changes to reduce silo working and enhance agile and collegiate approaches.

Regular biennial staff engagement surveys are undertaken independently using the ‘Peachy Mondays’ platform and utilise a common format and questions to support comparison. Outcomes from the last survey (spring 2024) were strongly positive and were reported fully in the 2023/24 financial statements. It is planned that a follow up survey will be undertaken in early 2026.

Utilising the Peachy Monday’s platform ensures that the survey benefits from this expertise and also that it is fully confidential. The platform also hosts the anonymous conversations functionality, allowing a representative from the College to respond to specific survey feedback and engage anonymously in conversation around these.

The survey data has been used in a variety of ways to influence Senior Leadership Team and People Team activities and plans. Including using the data to inform operational priorities and focus in respect of staff CPD and other development opportunities.

Specific feedback in respect of issues surrounding student behaviour management have supported prioritisation of this as a key ’Changing Learner’ theme during 2024/25, combining the development of positive behaviour management with the growing focus on embedding trauma informed practice across all services and staff approaches.

The #JustOne Hour initiative launched in 2024 continues to grow and develop. During AY 2024/2025, over 550 staff have attended more than 40 individual college sessions, with 95.5% rating their experience as ‘excellent’. Wellbeing engagement has increased in almost all teams, especially for those that have not previously been involved. This approach will continue to be developed through 2025/2026.

In line with the Our People element of the 2030 Strategy, arrangements to support staff wellbeing have been refreshed and the College has also become a signatory of the TUC Dying to Work Charter, offering clear support for any staff diagnosed with a terminal illness.

41

Responding to feedback within the staff survey, the College’s first all staff development day was held in November 2024. This event was held across all campuses with over 400 staff attending and over 80 different CPD sessions offered with over 90% reported feeling more confident and equipped for their roles post-event.

Of those responding, 82% highlighted that they would recommend the session they attended to their colleagues, with 80% keen to attend further similar development activities. Following on from this feedback, a similar all staff event has been scheduled for February 2026.

In line with recommended good practice from Audit Scotland an updated Workforce Plan was implemented in February 2025. This revised 2025 – 2028 plan outlines the key areas of focus for the recruitment, development and leadership of our workforce over the forthcoming period, embedding recognised themes around CPD, the Changing Learner, Trauma Informed Practice and Digital / AI developments.

D&A is committed to the Fair Work agenda and principles as outlined in the Fair Work First statement on our website. We have positive and productive relationships with our recognised unions (EIS, GMB and Unison). The College and recognised unions work together on joint solutions and approaches, based around agreed principles and ways of working. This includes approaches in respect of the adoption and promotion of health and safety and joint ways of working as unions/management. These approaches have supported greater engagement and communication between College and unions and have supported engagement around the major savings and efficiency plans.

Direct engagement and communication with staff is open, ensuring that all staff have access to up-todate information around College developments, opportunities and challenges. We make active use of service design methodologies to engage and involve staff in major developments impacting the College and offer multiple opportunities for staff at all levels to join working groups, College committees and other developments. Two members of staff are full members of the Board of Management alongside the trade union nominated board members introduced in March 2024.

The College has transparent arrangements underpinning staff recruitment and progression coupled with extensive continuous professional development support for all staff. The College has been a Living Wage employer since 2017 and operates a range of best practice Human Resource policies and procedures to underpin positive engagement, equalities, dignity, wellbeing and job security for staff.

Staff satisfaction and engagement is consistently high and our absence and turnover figures are regularly well below national averages.

The College is a regular winner of employer awards, including recognition for individual services and activities, and as an employer of choice. Evaluation under the Scottish Government Fair Work Selfevaluation tool places D&A at the highest 'Embedding level' across all five Fair Work indicators.

Good use continues to be made of the JISC Digital Elevation tool to evaluate progress on our digital transformation. This has identified significant strengths around our Digital Culture, Pre-arrival, Curriculum Staff, Cyber Security and Cloud elements, with these assessed to be operating at the ‘elevate’ level.

42

We are progressing rapidly with our cloud first strategy and have invested significantly (c£950k) in our network infrastructure over the past 24 months. We are currently investing in replacement of our full range of student management systems, designed to improve and integrate services for students whilst significantly reducing costs. As part of our transformation agenda we are progressing our use of data to inform and transform analysis and decision making.

Excellent progress has been made in respect of our Climate Emergency Action Plan, with D&A reducing its scope 1 and 2 emissions by c70% since 2009. We have achieved almost all of the challenge targets outlined within our CEAP Roadmap published in 2021, with significant progress also being made in respect of the handful of targets not achieved. To further support our journey to net zero, a revised CEAP and set of stretching targets was published in late 2024.

Our curriculum sustainability mapping project commenced in January 2023, with our Academic Development Team working in partnership with curriculum teams to identify and create opportunities to promote and embed the UN Sustainable Development Goals within curriculum content and teaching practice.

All of these activities reflect our commitment to take a mixture of practical, cultural, and pedagogical action to address the climate emergency and meet our ambitious net zero ambitions.

All of these activities are supported by mandatory training on positive equalities practice and our culture and approaches to foster good relations across the range of equalities protected characteristics.

In May 2024 D&A became the first college in Scotland to be recognised as a College of Sanctuary for our practice in supporting positive engagement and integration for refugees and asylum seekers and we have progressed significant work to further tackle issues of gender based violence in our community.

We introduced our student charter in August 2024 to underpin expectations and behaviours across the College, linking this into our college values and promoting our RSPECT branding for students and staff.

Outcomes in respect of monitoring of equalities data and activities are reported through our Equalities Mainstreaming Report and Gender Pay Gap reporting

==> picture [493 x 204] intentionally omitted <==

43

*Compensation for loss of office

The table below summarises the exit packages by cost band.

2025 2025 2025 2024
Exit package cost
band		 Number of
compulsory
redundancies		 Number of other
departures
agreed		 Total number of
exit packages by
cost band		 Total number of
exit packages by
cost band
<£10,000 - 7 7 3
£10,000 - £25,000 - 7 7 3
£25,000 - £50,000 - 7 7 3
£50,000 - £100,000 - 2 2 1
£100,000 - £150,000 - 0 0 0
Total number of exit
packages		 - 23 23 10
Total cost (£) - 504,911 504,911 231,193

*Salaries and Related costs

2025 2025 2025 2024
Directly employed
staff on
permanent UK
contracts £000s		 Other staff including short-
term contract, seconded and
agency staff £000s		 Total Total
Wages and salaries 23,707 3,847 27,554 25,638
Social securitycosts 2,494 398 2,892 2,520
Otherpension costs 4,923 785 5,708 4,896
Total 31,124 5,030 36,154 33,054
Average number of FTE 540 98 638 617

The total number of higher paid staff, including senior post-holders, above a threshold of total emoluments of £60,000, are tabled in Note 9. The total remuneration of the Principal is given in Note 10 along with the total emoluments of all senior post holders.

44

Facility Time

In accordance with the Trade Union (Facility Time Publication Requirements: Regulations 2017, the College provided the following support through paid facility time for union officials working at the College during the year ended 31 July 2025.

Relevant Union Officials

Relevant Union Officials
Number of Employees who were relevant union
officials during the relevantperiod:		 Full-time equivalent employee number:
9 9

Percentage of time spent on facility time

Percentage of time spent on facility time
Percentage: Number of Employees:
0% 0
1%-50% 9
51%-99% 0
100% 0
Percentage ofpay bill spent on facility time
Total cost of facilitytime: £64,328
Totalpaybill: £35,931,820
Percentage of the totalpaybill spent on facilitytime: 0.18%
Paid trade union activities
Time spent on trade union activities as a percentage
of totalpaid facilitytime hours:		 12%

Approved on Behalf of the Board of Management on 09 December 2025

Simon Hewitt

Simon Hewitt (Dec 9, 2025 16:25:34 GMT)

Simon Hewitt Principal

45

Independent Auditor’s Report (continued)

Independent auditor’s report to the Board of Management of Dundee and Angus College, the Auditor General for Scotland and the Scottish Parliament

Report on the audit of the financial statements

Opinion on the financial statements

We have audited the financial statements in the annual report and accounts of Dundee and Angus (“the College”) and its Group for the year ended 31 July 2025 under the Further and Higher Education (Scotland) Act 1992 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Consolidated and College Statement of Comprehensive Income, Consolidated and College Statement of Changes in Reserves, Consolidated and College Statement of Financial Position, and the Consolidated and College Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accompanying financial statements:

Basis for opinion

We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Auditor General for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We were appointed by the Auditor General on 18 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the College and its Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the College. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

46

Independent Auditor’s Report (continued)

Conclusions relating to going concern basis of accounting

We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the College and its Group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the College and its Group. However, we report on the College’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website.

Risks of material misstatement

We report in our Annual Audit Report, the most significant assessed risks of material misstatement that we identified and our judgements thereon.

Responsibilities of the Board of Management for the financial statements

As explained more fully in the Statement of the Board of Management's Responsibilities, the Board of Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the

financial reporting framework, and for such internal control as the Board of Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Management is responsible for assessing the ability of the College and its Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the College and its Group.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities,

including fraud. Procedures include:

47

Independent Auditor’s Report (continued)

The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the College’s controls, and the nature, timing and extent of the audit procedures performed.

Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved.

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Reporting on regularity of expenditure and income

Opinion on regularity

In our opinion in all material respects the expenditure and income in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.

Responsibilities for regularity

The Board of Management is responsible for ensuring the regularity of expenditure and income. In addition to our responsibilities in respect of irregularities explained in the audit of the financial statements section of our report, we are responsible for expressing an opinion on the regularity of expenditure and income in accordance with the Public Finance and Accountability (Scotland) Act 2000.

Reporting on other requirements

Opinion prescribed by the Auditor General for Scotland on the audited parts of the Remuneration and Staff Report

We have audited the parts of the Remuneration and Staff Report described as audited. In our opinion, the audited parts of the Remuneration and Staff Report have been properly prepared in accordance with the Further and Higher Education (Scotland) Act 1992 and directions made thereunder by the Scottish Funding Council.

48

Independent Auditor’s Report (continued)

Other information

The Board of Management is responsible for the other information in the annual report and accounts. The other information comprises the Performance Report and the Accountability Report excluding the audited parts of the Remuneration and Staff Report.

Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit

or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Performance Report and Governance Statement to the extent

explicitly stated in the following opinions prescribed by the Auditor General for Scotland.

Opinions prescribed by the Auditor General for Scotland on the Performance Report and Governance Statement

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

We are required by the Auditor General for Scotland to report to you if, in our opinion:

We have nothing to report in respect of these matters.

Conclusions on wider scope responsibilities

In addition to our responsibilities for the annual report and accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice are set out in our Annual Audit Report.

49

Independent Auditor’s Report (continued)

Use of our report

This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.

Michael Speight

Michael Speight (Dec 11, 2025 10:23:18 GMT)

Michael Speight, Audit Director

For and on behalf of Forvis Mazars LLP

Forvis Mazars

5th Floor,

3 Wellington Place,

Leeds

LS1 4AP

11/12/2025

Michael Speight is eligible to act as an auditor in terms of section 21 of the Public Finance and Accountability (Scotland) Act 2000

50

PROFESSIONAL ADVISERS

External Auditor

Forvis Mazars LLP 5[th] Floor 3 Wellington Place Leeds LS1 4AP

Internal Auditor

MHA Henderson Loggie 20 Greenmarket Dundee DD1 4QB

Banking

The Royal Bank of Scotland Brothock Bridge Arbroath DD11 1NP

Santander UK PLC 301 St Vincent St Glasgow G2 5HN

Solicitors

Thorntons Law LLP Whitehall House, 33 Yeaman Shore Dundee DD1 4BJ

51

CONSOLIDATED AND COLLEGE STATEMENTS

Consolidated & College Statement of Comprehensive Income for the year ended 31 July 2025

uly 2025
Note
Income
Funding body grants
3
Tuition fees and education
contracts
4
Other grants and contracts
5
Other income
6
Investment income
Donations and endowments
7
8
Total income
Expenditure
Staff costs
9
Cost of Job Evaluation not
matched by Revenue
9
Exceptional restructuring costs 9
Other operating expenses
11a
Depreciation
12
Interest and other finance
costs
11b
Total expenditure
(Deficit) before other gains/
(losses)
Loss on disposal of assets
(Deficit) for the year
Actuarial gain/(loss) in respect
of pension scheme
Unrealised surplus/(loss) on
revaluation of tangible fixed
assets
Total comprehensive
income for the year		 Consolidated
2025
£000
2024
£000
34,181
34,183
4,870
4,780
5,275
3,366
2,978
2,330
96
110
109
702
47,510
45,470
35,364
32,304
676
676
348
238
9,216
12,072
3,782
3,889
136
186
49,522
49,365
(2,012)
(3,895)
(23)
-
(2,035)
(3,895)
306
(410)
8,938
(3,765)
7,209
(8,070)		 College
2025
£000
2024
£000
34,181
34,183
4,870
4,780
5,265
3,351
2,673
2,119
96
110
109
702
47,195
45,244
35,233
32,152
676
676
348
238
9,060
11,950
3,782
3,889
136
186
49,235
49,091
(2,040)
(3,847)
(23)
-
(2,063)
(3,847)
306
(410)
8,938
(3,765)
7,181
(8,022)
45,244
32,152
676
238
11,950
3,889
186
49,091
(3,847)
-
(3,847)
(410)
(3,765)
(8,022)

52

Consolidated & College Statements (continued)

For the year ended 31 July 2025

Note
Represented by:
Unrestricted comprehensive
income for the year
Deficit for the year attributable to:
Group/College
Total comprehensive
income/(expenditure) for the
year attributable to:
Group/College		 Consolidated
2025
£000
2024
£000
7,209
(8,070)
7,209
(8,070)
(2,035)
(3,895)
(2,035)
(3,895)
7,209
(8,070)
7,209
(8,070)		 College
2025
£000
2024
£000
7,181
(8,022)
7,181
(8,022)
(2,063)
(3,847)
(2,063)
(3,847)
7,181
(8,022)
7,181
(8,022)		 College
2025
£000
2024
£000
7,181
(8,022)
7,181
(8,022)
(2,063)
(3,847)
(2,063)
(3,847)
7,181
(8,022)
7,181
(8,022)
(8,022)
(3,847)
(3,847)
(8,022)
(8,022)

The Statement of Comprehensive Income is in respect of continuing activities.

The Statement of Comprehensive Income is prepared under the FE/HE SORP. Colleges are also subject to Central Government accounting rules, but the FE/HE SORP does not permit colleges to include Government non-cash allocations for depreciation in the Statement of Comprehensive Income. Note 2 provides details of the adjusted operating position on a Central Government accounting basis.

Comprehensive income includes a £4.0m adjustment for changes to Accounting Treatment of Support Job Evaluation funding in 2023/24. This created a provision of £4.0m in 2023/24 and this increased to £4.678m in 2024/25. This is detailed in Note 21 and in the “Technical Impact of National Job Evaluation Funding Change” section on page 18.

The accompanying notes form part of these financial statements.

53

Consolidated & College Statements (continued)

Consolidated & College Statement of Changes in Reserves For the year ended 31 July 2025

Consolidated balance at 1 August 2023
(Deficit) from the Consolidated Statement of
Comprehensive Income
Actuarial loss
Revaluation loss
Transfers between revaluation and income and
expenditure reserves
Total comprehensive income for the year
Balance at 1 August 2024
(Deficit) from the Consolidated Statement of
Comprehensive Income
Actuarial surplus
Revaluation surplus
Transfers between revaluation and income and
expenditure reserve
Total comprehensive income for the year
Balance at 31 July 2025
College
Balance at 1 August 2023
(Deficit) from the College Statement of
Comprehensive Income
Actuarial loss
Revaluation loss
Transfers between revaluation and income and
expenditure reserve
Total comprehensive income for the year
Balance at 1 August 2024
(Deficit) from the College Statement of
Comprehensive Income
Actuarial surplus
Revaluation surplus
Transfers between revaluation and income and
expenditure reserve
Total comprehensive income for the year
Balance at 31 July 2025		 Income
Expenditure
Reserve
£000
14,166
(3,895)
(410)
-
631
(3,674)
10,492
(2,034)
306
-
695
(1,033)
9,459
14,144
(3,847)
(410)
-
631
(3,626)
10,518
(2,062)
306
-
695
(1,061)
9,457		 Revaluation
Reserve
£000
33,340
-
-
(3,765)
(631)
(4,396)
28,944
-
-
8,938
(695)
8,243
37,187
33,340
-
-
(3,765)
(631)
(4,396)
28,944
-
-
8,938
(695)
8,243
37,187		 Total
£000
47,506
(3,895)
(410)
(3,765)
-
(8,070)
39,436
(2,034)
306
8,938
-
7,210
46,646
47,484
(3,847)
(410)
(3,765)
-
(8,022)
39,462
(2,062)
306
8,938
-
7,182
46,644

There are no endowment or restricted reserves

54

Consolidated & College Statements (continued)

Consolidated & College Statement of Financial Position as at 31 July 2025

Consolidated Consolidated College
2025 2024 2025 2024
Note £000 £000 £000 £000
Non-current assets
Fixed assets 12 74,102 67,791 74,102 67,791
Trade & other receivables 13 464 546 464 546
74,566 68,337 74,566 68,337
Current assets
Stocks 10 13 9 10
Trade & other receivables 13 1,164 1,633 1,167 1,629
Cash and cash equivalents 4,076 6,777 4,061 6,726
5,250 8,423 5,237 8,365
Creditors: amounts falling due
within one year 14 7,087 9,476 7,076 9,392
Net current (liabilities) (1,837) (1,053) (1,839) (1,027)
Total assets less current
liabilities 72,729 67,284 72,727 67,310
Less: Creditors falling due
after more than one year		 15 19,456 21,557 19,456 21,557
Net assetsexcluding pension
and other (asset)/liability		 53,273 45,727 53,271 45,753
Provision 21 4,678 4,001 4,678 4,001
Funded pension (asset)/
liability		 16 - - - -
Unfunded pension liability 17 1,950 2,290 1,950 2,290
Total net assets 46 46,645 39,436 46,643 39,462
Unrestricted reserves
Income and expenditure
reserve – unrestricted		 9,458 10,492 9,456 10,518
Revaluation reserve 37,187 28,944 37,187 28,944
Total reserves 46,645 39,436 46,643 39,462

The financial statements were approved and authorised for issue by the Board of Management on 09 December 2025 and signed on its behalf by:

Laurie O’Donnell - Chair

Simon Hewitt – Principal

Simon Hewitt

Simon Hewitt (Dec 9, 2025 16:25:34 GMT)

55

Consolidated & College Statements (continued)

Consolidated Statement of Cash Flows For the year ended 31 July 2025

Note
Cash flow from operating activities
Deficit for the year
Adjustment for non-cash items
Depreciation
12
Decrease/(Increase) in stocks
Decrease in debtors
Decrease in creditors
Pension costs less contributions payable
(Decrease)/Increase in Provision
21
Adjustment for investing or financing
activities
Investment income
7
Interest payable
11b
Loss on the sale of fixed assets
Release of deferred capital grants
Net cash (outflow)/inflow from
operating activities
Cash flow from investing activities
Proceeds from sale of fixed assets
Investment income
Deferred capital grants received
Non-government capital grants
Payments made to acquire fixed assets
Net cash inflow from investing
activities
Cash flow from financing activities
Interest paid
Repayments of amounts borrowed
Net cash (outflow) from financing
activities
(Decrease)/Increase in cash and cash
equivalents in the period
Cash and cash equivalents at beginning
of the period
Cash and cash equivalents at end of the
period		 2025
£000
(2,035)
3,782
3
552
(2,389)
643
(353)
(96)
85
(15)
(2,474)
(2,297)
38
96
1,179
(1,179)
134
(85)
(453)
(538)
(2,701)
6,777
4,076		 2024
£000
(3,895)
3,889
(1)
3,076
(2,841)
(410)
4,001
(109)
123
-
(2,121)
1,712
-
109
732
(732)
109
(123)
(454)
(577)
1,244
5,533
6,777

56

NOTES TO THE FINANCIAL STATEMENTS

Note 1 Statement of Principal Accounting Policies

Charity Information

The College was established under the Further and Higher Education Act 1992. The College is a registered charity (Scottish charity Number: SC021188) for the purposes of the Law Reform (Miscellaneous Provision) (Scotland) Act 2005. The registered office is Old Glamis Road, Dundee, DD3 8LE.

Basis of Preparation

The financial statements are prepared in accordance with the requirements of the Further and Higher Education (Scotland) Act 1992, the Statement of Recommended Practice (SORP) 2019: Accounting in Further and Higher Education, and the Financial Reporting Manual (FReM) 2024-25 issued by HM Treasury and in accordance with applicable Accounting Standards, including Financial Reporting Standard 102 – "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" ("FRS 102"), the Charities and Trustee Investment (Scotland) Act 2005, and regulation 14 of The Charities Accounts (Scotland) Regulations 2006. They conform to the Accounts Direction and other guidance issued by the Scottish Funding Council.

The college is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102.

Basis of Accounting The financial statements are prepared in accordance with the historical cost convention modified by the revaluation of certain fixed assets.

The accounting policies contained in the FReM apply International Reporting Standards as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy the accounting policy which is judged to be most appropriate to the College for the purpose of giving a true and fair view has been selected. The particular policies adopted by the College in dealing with items that are considered material to the financial statements are set out in these notes.

The financial statements are presented in Sterling (£).

Significant judgements and estimates

In the application of the Group’s accounting policies, the Board of Management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation have been applied as follows:

57

Notes to the Financial Statements (continued)

Non-current asset valuations and useful economic lives - College buildings are of a specialist nature and are valued on the depreciated replacement cost basis. Buildings are depreciated over their expected remaining useful economic life as assessed by an independent, qualified valuer. As a result of the 10-year infrastructure vision for the College as highlighted in the Performance report, statement from the Principal the economic life has not been reduced.

The Caretaker’s Cottage at Kingsway Campus is an exception as it is valued at Market Value.

Obligations under the LGPS - The Board has relied on the actuarial assumptions of independent, qualified actuaries. The assumptions interact in complex ways, and the balance sheet position is dependent upon several factors. The key variables are Asset Returns, Discount Rate, Inflation and Mortality. An Asset Ceiling was applied by the scheme actuaries in 2022/23 and this continues for 2024/25. The asset ceiling is the present value of any economic benefit available to the Employer in the form of refunds or reduced future employer contributions. Whilst it is potentially possible for employers to receive such benefit it is assumed that there is no prospect of an unconditional right to this as it is at the discretion of the fund. Furthermore, it is assumed that the employer will participate in the fund indefinitely and the present value of future accruals and primary contributions far exceed the value of the Asset Ceiling and consequently the economic benefit of future contribution reductions is nil. We have reviewed these assumptions and consider them reasonable and appropriate. A provision continues to be made for unfunded pension liabilities.

Continuing Activities

The results reported in the financial statements are derived from the continuing activities of Dundee and Angus College.

Basis of Consolidation

The consolidated financial statements for the Group bring together the financial statements of the College and its wholly owned subsidiary ‘Gardyne Theatre Limited’.

Investment in Subsidiaries

The consolidated financial statements incorporate the financial statements of the college and entities controlled by the Group. Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities.

The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intragroup transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Recognition of Income

Income from the sale of goods or services is credited to the Consolidated Statement of Comprehensive Income when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.

Fee income is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Comprehensive Income over the period in which students are studying.

58

Notes to the Financial Statements (continued)

Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount.

All income from short-term deposits and investments is credited to the Consolidated Statement of Comprehensive Income on a receivable basis.

Funds the College receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure account.

Grant Funding

Government revenue grants including the recurrent grants from the Scottish Funding Council (SFC) are recognised in income over the periods in which the College recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year, as appropriate.

Grants from non-government sources are recognised in income when the College is entitled to the income and any performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the statement of financial position and released to income as the conditions are met.

Donations and Endowments

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions are recognised in income when the College is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

Donations with no restrictions are recognised in income when the College is entitled to the funds.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income, according to the terms of the restriction applied to the individual endowment fund. There are four main types of donations and endowments identified within reserves:

  1. Restricted donations - the donor has specified that the donation must be used for a particular objective.

  2. Unrestricted permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the College.

  3. Restricted expendable endowments - the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the College has the power to use the capital.

  4. Restricted permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

Capital Grants

Government capital grants are recognised in income over the expected useful life of the asset. Other capital grants are recognised in income when the College is entitled to the funds subject to any performance related conditions being met. The funds will be held in deferred income under creditors until conditions are met.

59

Notes to the Financial Statements (continued)

Foreign Currency Translation

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of the transactions.

Maintenance of Premises

Property maintenance is carried out as a result of surveys, ongoing inspections and in accordance with the College Estates Strategy. The cost of the maintenance is charged to the Consolidated Statement of Comprehensive Income in the year in which it is incurred.

Pension Schemes

The College participates in two multi-employer defined benefit pension schemes.

Teaching staff may join the Scottish Teachers’ Superannuation Scheme (STSS), which is administered by the Scottish Public Pensions Agency. The College is unable to identify its share of the underlying assets and liabilities of the STSS and therefore, as required by FRS 102, accounts for its participation in the STSS as if it were a defined contribution scheme. Contributions are charged to the income and expenditure account as they arise. This is expected to result in the pension cost being a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries based on periodic valuations using the projected unit basis.

Non-teaching staff may join the Tayside Superannuation Scheme which is administered by Dundee City Council. The Fund is a defined benefit pension scheme, contracted out of the State Earnings-Related Pension Fund. Benefits are provided based on length of service, together with final pensionable pay to 31 March 2015 and Career Average Revalued Earnings thereafter. Assets and Liabilities of the Fund are held separately from those of the College. Fund assets are measured using market values. Fund liabilities are measured using a projected unit method and discounted at the current rate of return on a high-quality corporate bond of equivalent term and currency to the liability.

Contributions to the Fund are calculated so as to spread the cost of pensions over employees’ working lives with the College. The contributions are determined by an actuary on the basis of triennial valuations using the Age Attained Method. The actuaries also review the progress of the scheme in each of the intervening years. Variations from regular costs are spread over the expected average remaining working lifetime of members of the Fund, after making allowances for future withdrawals. The expected cost of providing staff pensions to employees contributing to the Fund is recognised in the Consolidated Statement of Comprehensive Income on a systematic basis over the expected average remaining lives of members of the Fund in accordance with FRS 102 and recognises retirement benefits as the benefits are earned and not when they are due to be paid.

Employment Benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.

60

Notes to the Financial Statements (continued)

Property, Plant and Equipment

(a) Land and Buildings

Land and buildings inherited from the local education authority, inherited but not in use for education purposes and other acquired land and buildings since incorporation are stated in the Statement of Financial Position at valuation. Land is not depreciated.

Buildings are depreciated over their expected useful economic life within the following major components:

Buildings and main sub-structure 50 years Internal structure/mechanical & electrical 25 years Internal fixtures & property improvements 10 years Information & communications infrastructure 5 years

Property improvements are depreciated on a straight-line basis over ten years.

Depreciation is revised to amortise building components over remaining economic life when this has been identified as part of the revaluation process described below.

Assets may continue in use beyond their initial estimated useful life. Where this is the case an estimation of the remaining useful life will be made along with a subsequent adjustment to recognise the remaining value in use.

A review for impairment of a fixed asset is carried out if events or changes in circumstance indicate that the carrying amount of the fixed asset may not be recoverable.

Where land and buildings are acquired with the aid of specific Government grants, the related grants are credited to a deferred capital grant account and are released to the Income and Expenditure Account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs incurred. They are not depreciated until they are brought into use.

(b) Property Revaluation

In accordance with the Government Financial Reporting Manual (FReM), tangible fixed assets are required to be valued on a current value basis. As a minimum, quinquennial valuations are undertaken with interim valuations in year three by qualified surveyors. Fair value will however be considered annually, and this exercise will be supplemented by further interim valuations using either surveyor values or building price indexation. A full revaluation of land and buildings was carried out at 31 July 2025 by an independent qualified valuer.

61

Notes to the Financial Statements (continued)

Costs which are easily identifiable for specific projects or of a similar type will be grouped, capitalised and depreciated on the relevant basis.

(d) Equipment Individual assets which are separately identifiable or groups of assets of a similar type are capitalised and depreciated on the relevant basis, at cost.

Capitalised equipment is depreciated over its useful economic life as follows:

Heavy plant 10 years Furniture 10 years Light plant and equipment 5 years Motor vehicles 4 years Computer/digital equipment 3 years

Assets may continue in use beyond their initial estimated useful life. Where this is the case an estimation of the remaining useful life will be made along with a subsequent adjustment to recognise the remaining value in use.

Where equipment is acquired with the aid of specific Government grants, the related grant is credited to a deferred capital grant account and released to the income and expenditure account over the expected useful economic life of the related equipment.

Equipment acquired by non-Government grants is carried at depreciated historical cost, which is used as a proxy for fair value. Depreciated historical cost is deemed to be more appropriate than revaluing for equipment as it is common for such assets to reduce in value, rather than increase, as they are utilised by the College.

Contracts providing a license to use software for a specific period are not capitalised where no ownership is acquired. The cost is charged to revenue and spread evenly over the term of the license with any prepayment included in debtors.

Leased Assets

Leases in which the College assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease.

62

Notes to the Financial Statements (continued)

Leasing agreements which transfer to the College substantially all the benefits and risks of ownership of an asset are treated as if the asset had been purchased outright. The assets are included in fixed assets and the capital element of the leasing commitments is shown as obligations under finance leases. Assets held under finance leases are depreciated over their useful life.

Where a lease covers both land and buildings, the land and buildings elements are considered separately for classification.

The lease rentals are treated as consisting of capital and interest. The capital element is applied to reduce the outstanding obligation and the interest element is charged to the Consolidated Statement of Comprehensive Income in proportion to the reducing capital element outstanding. Leases not meeting the criteria of a finance lease are treated as an operating lease. Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

Arrangements that do not have the legal status of a lease but convey a right to use an asset in return for payment are accounted for under this policy where fulfilment of the arrangement is dependent on the use of specific assets.

Stocks are stated at the lower of their cost and net realisable value. Where necessary, provision is made for obsolete, slow moving and defective stocks.

Cash and cash equivalents

Cash includes cash in hand and deposits repayable on demand. Deposits are repayable on demand if they are in practice available within 24 hours without penalty. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

The College is obliged to use the Scottish Government Banking Scheme and consequently utilises only current and special interest-bearing accounts repayable on demand.

Debtors

Debtors are measured at transaction price, less any impairment, unless the arrangement represents a financing transaction. If the arrangement constitutes a financing transaction, the college measures the financial asset at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Loan receivables are measured initially at the present value of cash receivable and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Financial assets identified as non-basic will be measured at fair value.

63

Notes to the Financial Statements (continued)

Creditors

Short Term Creditors are measured at transaction price.

Other financial liabilities, including bank loans are measured initially at the present value of cash payable, and are measured subsequently at amortised cost using the effective interest method.

Financial liabilities identified as non-basic will be measured at fair value.

Agency Arrangements

The College acts as an agent in the collection and payment of certain Student Support Funds. These funds are excluded from the Consolidated Statement of Comprehensive Income, and movements have been disclosed in the notes to the financial statements.

Where the College has more discretion in the manner in which specific funds are disbursed, and those funds do not meet the definition of agency funds, the income and expenditure related to those funds are shown in the Consolidated Statement of Comprehensive Income.

Taxation

The College is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable organisation for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The College is partially exempt from VAT.

The College's subsidiary company is subject to corporation tax and VAT in the same way as any commercial organisation, although where profits are transferred by gift aid corporation tax will not be liable.

Provisions

Provisions are recognised when the College has a present, legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Reserves

Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the College, are held as a permanently restricted fund which the College must hold in perpetuity.

Other restricted reserves include balances where the donor has designated a specific purpose and therefore the College is restricted in the use of these funds.

64

Notes to the Financial Statements (continued)

2
Government Non-cash
allocation for depreciation
(Deficit) before other gains and
losses (FE/HE SORP basis)
Add back: Non-cash allocation
for depreciation (net of
deferred capital grant)
(Deficit) on Central
Government accounting basis		 Consolidated
2025
£000
2024
£000

(2,012)
(3,895)
1,055
1,055
(957)
(2,840)		 College
2025
£000
2024
£000
(2,040)
(3,847)
1,055
1,055
(985)
(2,792)		 College
2025
£000
2024
£000
(2,040)
(3,847)
1,055
1,055
(985)
(2,792)
(2,792)

Following reclassification, colleges received additional non-cash budget to cover depreciation, but this additional budget is not recognised under the FE/HE SORP accounting rules. As a result, colleges show a deficit equivalent to net depreciation (where funds are spent on revenue items) to meet Government accounting rules and the requirement to spend the entire cash allocation.

Under the FE/HE SORP, the college recorded a consolidated operating deficit of £2.012m for the year ended 31 July 2025. After taking account of the Government non-cash budget, the college shows an “adjusted” consolidated deficit of £0.957m on Central Government accounting basis.

3
Scottish Funding Council
grants
SFC recurrent grant
SFC childcare funds
Release of deferred capital
grants
Capital grants
Other SFC grants		 Consolidated
2025
£000
2024
£000
31,251
28,366
305
412

64
-
2,561
1,714
-
3,691
34,181
34,183		 College
2025
£000
2024
£000
31,251
28,366
305
412
64
-
2,561
1,714
-
3,691
34,181
34,183

65

Notes to the Financial Statements (continued)

4
Tuition Fees and Education
Contracts
FE fees - UK & EU
FE fees – non-EU
HE fees
Education contracts
Other contracts
5
Other Grants and Contracts
Releases of deferred capital
grants (non SFC)
Other grant income
6
Other Income
Residences, catering and
conferences
Other income-generating
activities
Other income		 Consolidated
2025
£000
2024
£000
450
713
236
146
2,205
1,971
8
2,389
1,520
12
4,870
4,780
Consolidated
2025
£000
2024
£000
2,349
408
2,926
2,958
5,275
3,366
Consolidated
2025
£000
2024
£000
1,177
1,026
1,261
966
540
338
2,978
2,330		 College
2025
£000
2024
£000
450
713
236
146
2,205
1,971
8
2,389
1,520
12
4,870
4,780
College
2025
£000
2024
£000
2,349
408
2,916
2,943
5,265
3,351
College
2025
£000
2024
£000
1,120
971
1,013
810
540
338
2,673
2,119		 College
2025
£000
2024
£000
450
713
236
146
2,205
1,971
8
2,389
1,520
12
4,870
4,780
College
2025
£000
2024
£000
2,349
408
2,916
2,943
5,265
3,351
College
2025
£000
2024
£000
1,120
971
1,013
810
540
338
2,673
2,119
2,119

66

Notes to the Financial Statements (continued)

7
Investment Income
Interest receivable
8
Donations and Endowment
Donations		 Consolidated
2025
£000
2024
£000
96
109
96
109
Consolidated
2025
£000
2024
£000
110
702
110
702		 College
2025
£000
2024
£000
96
109
96
109
College
2025
£000
2024
£000
110
702
110
702		 College
2025
£000
2024
£000
96
109
96
109
College
2025
£000
2024
£000
110
702
110
702
702

Dundee and Angus Foundation donated £110k in 2024/25 to support specialist staff to manage the next stages of Dundee and Angus College Infrastructure Vision and creation of the required outline and final business cases.

Dundee and Angus Foundation donated £700k in 2023/24 towards replacement of the College IT network.

9
Staff Costs
Wages and salaries
Social security costs
Other pension costs
Exceptional restructuring
costs		 Consolidated
2025
£000
2024
£000
27,443
25,564
2,890
2,520
5,707
348
4,896
238
36,388
33,218		 College
2025
£000
2024
£000
27,324
25,426
2,883
2,513
5,702
348
4,889
238
36,257
33,066		 College
2025
£000
2024
£000
27,324
25,426
2,883
2,513
5,702
348
4,889
238
36,257
33,066
33,066

67

Notes to the Financial Statements (continued)

Staff Costs (continued)
Academic/Teaching
departments
Academic/Teaching services
Administrative and central
services
Premises
Catering and Residences
Sub-total
Exceptional restructuring
costs		 Consolidated
2025
£000
2024
£000
22,334
20,606
695
10,468
627
9,209
1,849
1,841
694
697
36,040
348
32,980
238
36,388
33,218		 College
2025
£000
2024
£000
22,334
20,606
695
10,337
627
9,057
1,849
1,841
694
697
35,909
348
32,828
238
36,257
33,066		 College
2025
£000
2024
£000
22,334
20,606
695
10,337
627
9,057
1,849
1,841
694
697
35,909
348
32,828
238
36,257
33,066
32,828
238
33,066

The Exceptional restructuring costs relate to our Voluntary Severance Scheme.

Pension liabilities to present and former staff of £323k (2024: £67k) and the Apprenticeship Levy of £129k (2024: £102k) have been included within administrative and central services.

A change to the accounting treatment of the anticipated costs associated with the implementation of a national middle management and support staff job evaluation exercise for colleges required reversal of a £3.7m debtor and corresponding creditor (Scottish Funding Council) and creation of a £4.0m provision for job evaluation along with a contingent asset in 2023/24. This accounting treatment has continued for 2024/25 and the provision and corresponding contingent asset have increased to £4.7m. Further information is included at note 21 in the notes to the accounts and in the section Technical Impact of National Job Evaluation Funding Change on page 18.

The average number of full-time equivalent employees (including higher paid employees) during the period was:

Academic/teaching
departments
Academic/teaching services
Administrative and central
services
Premises
Catering and residences
Total		 Consolidated
2025
Number
2024
Number
355
15
194
342
15
189
51
48
20
22
635
616		 College
2025
Number
2024
Number
355
15
189
342
15
184
51
48
20
22
630
611		 College
2025
Number
2024
Number
355
15
189
342
15
184
51
48
20
22
630
611
611

68

Notes to the Financial Statements (continued)

Pay awards for Dundee and Angus College staff are negotiated nationally, except Senior Leadership Team pay awards which are determined by the Board Remuneration Committee. The Board of Gardyne Theatre Limited determine pay awards for theatre staff. There are no outstanding pay awards at July 2025.

The number of staff, including the Principal, who received emoluments in the following ranges (above a threshold of £60,000) was:

Senior Staff
2025
2024
£60,001 - £70,000
1
1
£70,001 - £80,000
7
5
£80,001 - £90,000
-
-
£90,001 - £100,000
-
2
£100,001 - £110,000
2
-
£120,001 - £130,000
-
1
£130,001 - £140,000
1
-
11
9
10
Senior Post-Holders’ Emoluments
Year to
31 July 2025
Number
The number of senior post-holders including
the Principal was:
11
£000
Salaries
915
Pension contributions
206
Total emoluments
1,121		 Other Staff
2025
2024
-
-
-
-
1
1
-
-
-
-
-
-
-
-
1
1
Year to
31 July 2024
Number
13
£000
890
195
1,085		 Other Staff
2025
2024
-
-
-
-
1
1
-
-
-
-
-
-
-
-
1
1
Year to
31 July 2024
Number
13
£000
890
195
1,085
1
1,085

69

Notes to the Financial Statements (continued)

The above emoluments are for key management personnel and include amounts payable to the Principal (who was the highest paid senior post-holders) of:

Salary
Pension contributions		 Year to
31 July 2025
£000
135
35
170		 Year to
31 July 2024
£000
129
31
160

The pension contributions in respect of the Principal and senior post-holders are in respect of employer’s contributions to the Scottish Teachers’ Superannuation Scheme or Local Government Superannuation Scheme and are paid at the same rate as for other employees.

Other than as stated above, no member of staff received any payment from the institution other than the reimbursement of travel and subsistence expenses incurred in the course of their duties.

Compensation for the loss of office paid to senior post holders:

Year to
31 July 2025
£000
Compensation for the loss of office paid to
senior post holders
2
Consolidated
11a
Other Operating Expenses
2025
£000
2024
£000
Academic/teaching
departments
1,015
1,456
Academic/teaching services
72
138
Administration and central
services
3,175
3,621
Premises costs
3,540
5,586
Catering and residence
operations
Other Income Generating
Activities
622
134
572
100
SFC Childcare funds
305
412
Agency staff costs
353
187
Total
9,216
12,072		 Year to
31 July 2024
£000
38
College
2025
£000
2024
£000
1,015
1,456
72
138
3,175
3,621
3,540
5,586
600
-
550
-
305
412
353
187
9,060
11,950		 Year to
31 July 2024
£000
38
College
2025
£000
2024
£000
1,015
1,456
72
138
3,175
3,621
3,540
5,586
600
-
550
-
305
412
353
187
9,060
11,950
11,950

70

Notes to the Financial Statements (continued)

Other operating expenses
include:
External Auditor’s remuneration
- in respect of these financial
statements
Internal Auditor’s remuneration
- internal audit
- other services
11b
Interest and Other Finance
Costs
Loan
Pension		 Consolidated
2025
£000
2024
£000
89
50
12
13
2
-
Consolidated
2025
£000
2024
£000
85
123
51
63
136
186		 College
2025
£000
2024
£000
78
39
12
13
2
-
College
2025
£000
2024
£000
85
123
51
63
136
186		 College
2025
£000
2024
£000
78
39
12
13
2
-
College
2025
£000
2024
£000
85
123
51
63
136
186
186

71

Notes to the Financial Statements (continued)

12 Property, Plant and Equipment

Valuation/Cost
Accounts 31 July 2024
Add back 2034/24
Revaluation movement
At 31 July 2024
Additions
Disposals
Revaluation Movement
At 31 July 2025
Depreciation
Accounts 31 July 2024
Add back 2034/24
Revaluation movement
At 31 July 2024
Disposals
Charge for year
Revaluation Movement
At 31 July 2025
Net Book Value
At 31 July 2024
At 31 July 2025		 Land and
Buildings
£000
98,382
5,318
103,700
453
(400)
438
104,191
32,096
5,318
37,414
(295)
3,303
(8,601)
31,821
66,286
72,370		 Equipment
£000
4,084
-
4,084
725
(188)
-
4,621
2,579
2,579
(169)
479
-
2,889
1,505
1,732		 Total
£000
102,466
5,318
107,784
1,178
(588)
438
108,812
34,675
5,318
39,993
(464)
3,782
(8,601)
34,710
67,791
74,102

Land and Buildings with a net book value of £43.023m have been financed by exchequer funds.

Land and Buildings are valued at depreciated replacement cost due to the specialist nature of the College, with the exception of the Caretaker’s Cottage at Kingsway Campus which is valued at £135k fair value and St Vigeans the Glebe in Arbroath at £35k fair value.

A full revaluation of land and buildings was carried out at 31 July 2025 by Graeme and Sibbald an independent firm of Chartered Surveyors who are regulated by the Royal Institution of Chartered

72

Notes to the Financial Statements (continued)

Surveyors (RICS). This resulted in an increase of £8.060m to the next book value of land and buildings between 2023/24 and 2024/25, comprising £8.601m revaluation and £0.541k depreciation.

The value of land and buildings has changed due to the revaluation exercise but has not changed due to capital additions because capital additions are considered from the perspective of the overall value of the buildings or useful economic life.

There are no assets under construction as at 31 July 2025 (31 July 2024, £0.383m).

We have made a presentational change to opening cost and depreciation balances for land and buildings in 2024/25 because £5.318m was charged to cost in 2023/24 and is better presented as a charge to cumulative depreciation. This resulted in a presentational change to the opening cost balance from £98.382m to £103.700m and depreciation opening balance from £32.096m to £37.414m. This did not change the net book value.

College assets can only be sold in accordance with the terms of the Procedure Notes for the Disposal of Exchequer-Funded Assets and the Retention of Proceeds by FE Colleges.


13 Debtors
Amounts falling due within
one year:
Trade Debtors
Prepayments / Accrued
Income
Amounts falling due after
more than one year:
Prepayments / Accrued
Income		 Consolidated
2025
£000
2024
£000
248
287
916
1,346
1,164
1,633
464
546
464
546		 2025
£000
253
914
1,167
464
464		 College
2024
£000
289
1,340
1,629
546
546

73

Notes to the Financial Statements (continued)

14 Creditors: amounts falling
due within 1 year
Deferred income and
payments received in advance
Trade creditors
Other creditors
Other tax and Social Security
Accruals
Bursaries and Access Funds
for future disbursement
Bank Term Loan
Deferred Capital Grant		 Consolidated
2025
£000
2024
£000
842
933
1,161
839
26
732
41
1,204
1,118
509
453
2,474
3,145
512
453
2,121
7,087
9,476		 2025
£000
841
941
24
730
1,104
509
453
2,474
7,076		 College
2024
£000
1,159
810
26
1,201
3,110
512
453
2,121
9,392

Creditors includes £491k (2024: £586k) relating to Scottish Funding Council grants.

Creditors include funds held for Energy Skills Partnership, an independent strategic partnership established by the Scottish Funding Council, of £583k (2024: £471k). At 31 July the College has no beneficial interest and acts as host for the partnership’s activities disbursing these funds to third parties. This is matched by corresponding cash and cash equivalent balance, resulting in a net nil impact upon the College’s financial statements.

A change to the accounting treatment of the anticipated costs associated with the implementation of a national middle management and support staff job evaluation exercise for colleges in 2023/24 required a £4.7m provision for job evaluation along with a contingent asset. Further information is included at note 21 in the notes to the accounts and in the section Technical Impact of National Job Evaluation Funding Change on page 18.

15
Creditors: amounts falling
due after 1 year
Deferred Capital Grant
Bank Term Loan		 Consolidated
2025
£000
2024
£000
18,543
20,191
913
1,366
19,456
21,557		 2025
£000
18,543
913
19,456		 College
2024
£000
20,191
1,366
21,557

74

Notes to the Financial Statements (continued)

Analysis of borrowings
Bank loans are repayable as 2025 2024
follows: £000 £000
Between one and two years 453 453
Between two and five years 460 913
In five years or more - -

Initially borrowed as a revolving credit facility, on 29th June 2012 this sum transferred to a term loan repayable over 15 years commencing July 2014. Amount repayable within one year is shown within Creditors: amounts falling due within one year.

16 Pension and Similar Obligations

The College’s employees belong to two principal pension schemes; the Scottish Teachers’ Superannuation Scheme (STSS) and the Local Government Pension Scheme (LGPS).

The total pension contributions paid for the period was £5.377m (2024: £4.995m).

STSS: contributions paid
LGPS: contributions paid
Total pension contributions paid for the year		 2025
£000
3,515
1,862
5,377		 2024
£000
3,138
1,817
4,955

Scottish Teachers’ Superannuation Scheme

(a) Dundee & Angus College participates in the Scottish Teachers’ Superannuation Scheme. The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary.

The results of the actuarial valuation as at 31 March 2020 informed an increased employer contribution to 26% from 1 April 2024 to 31 March 2027. The anticipated average yield employee’s contribution is 9.6%. The level of contributions depends upon many factors but the change in financial assumptions and cost of future pension benefits has had the greatest impact upon the increase in employer contributions.

(b) The College has no liability for other employers’ obligations to the multi-employer scheme.

75

Notes to the Financial Statements (continued)

(c) As the scheme is unfunded there can be no deficit or surplus to distribute on the windup of the scheme or withdrawal from the scheme.

(d) (i) The scheme is an unfunded multi-employer defined benefit scheme.

(d) (ii) It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where Dundee & Angus College is unable to identify its share of the underlying assets and liabilities of the scheme.

(d) (iii) The employer contribution rate for the period from 1 April 2022 was 23% of pensionable pay. The employee rate applied is variable and is anticipated to provide a yield of 9.4% of pensionable pay. As described above, these rates increase to 26% and 9.6% from 1 April 2024.

(d) (iv) The College’s level of participation in the scheme is 0.44% based on the proportion of employer contributions paid in 2022/23 and 2023-24

Local Government Pension Scheme (LGPS) - The LGPS is a defined benefit statutory scheme, with the assets held in separate trustee administered funds. It currently provides benefits based on career average revalued earnings. The scheme is subject to triennial valuations by independent actuaries, with the most recent results available from a valuation carried out as at 31 March 2023. The employer contribution was maintained at 17% until 31 March 2024. This reduced to 15.7% on 1 April 2024 and is expected to remain at 15.7% until the next valuation in 2026.

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Equities
Gilts
Other bonds
Property
Cash
Alternatives
Total		 2025
£000
68,032
6,071
6,232
17,444
2,001
(2)
99,778		 %
68
6
6
18
2
-
100		 2024
£000
65,198
5,662
4,239
7,826
1,671
62
84,658		 %
77
7
5
9
2
-
100

Principal actuarial assumptions at the Statement of Financial Position date (expressed as weighted averages):

eighted averages):
2025 2024
% %
Discount rate at 31 July
5.80		 5.00
Future salary increases
3.85		 3.85
Future pension increases (CPI) 2.85 2.85
RPI inflation 3.10 3.20

76

Notes to the Financial Statements (continued)

Life expectancy from age 65 years:
Retiring today:
Male
Female

Retiring in 20 years:
Male
Female
Statement of Financial Position
Net Pension Asset as at:
Present value of the defined benefit obligation
Fair value of Fund assets (bid value)
Notional Surplus
Unrecognised past service cost
Impact of actuarial asset ceiling cap calculation
Net defined benefit asset		 19.1
21.7

20.5
23.2
2025
£000
(58,562)
99,778
41,216
-
(41,216)
-		 18.8
21.6
20.2
23.1
2024
£000
(62,355)
84,658
22,303
-
(22,303)
-

The application of an Asset Ceiling at 31 July 2025 is disclosed within Note 1.

Employer membership statistics

The table below summarises the membership data as at 31 March 2023 for members receiving funded benefits, and as at 31 March 2023 for any members receiving unfunded benefits.

Member data summary **Number ** Salaries/Pensions Average age
£000s
Actives 577 10,371 46
Deferred pensioners 616 887 48
Pensioners 274 1,468 69
Unfundedpensioners 78 343 81

This includes membership under the following employers in the Fund: (236) Dundee and Angus College, (402) Angus College, and (202) Dundee College.

77

Notes to the Financial Statements (continued)

Amounts recognised in the Consolidated
Statement of Comprehensive Income
Service cost
Net interest on the defined asset/(liability)
Administration expenses
Total cost		 2025
£000
2,410
51
36
2,497		 2024
£000
1,751
63
35
1,849

Asset and benefit obligation reconciliation

Reconciliation of opening and closing balances of the present value of the defined benefit obligation

Opening defined benefit obligation
Current service cost
Interest cost
Change in financial assumptions
Change in demographic assumptions
Experience loss on defined benefit obligation
Liabilities assumed / (extinguished) on
settlements
Estimated benefits paid net of transfers in
Past service cost, including curtailments
Contributions by scheme participants and other
employers
Closing defined benefit obligation		 2025
£000
62,355
2,410
3,084
(8,810)
300
573
-
(2,128)
-
778
58,562		 2024
£000
54,122
1,692
2,747
2,128
(140)
3,400
-
(2,236)
59
583
62,355

78

Notes to the Financial Statements (continued)

Changes in the fair value of scheme assets

Reconciliation of opening and closing 2025 2024
balances of the fair value of scheme assets £000 £000
Opening fair value of scheme Assets 84,658 79,591
Interest on assets 4,252 4,104
Return on assets less interest 10,131 72
Other actuarial gains - 726
Administration expenses (36) (35)
Contributions by employer included unfunded 2,531 2,261
Contributions by scheme participants and other
employers 778 583
Estimated benefits paid unfunded net of transfers
in (2,536) (2,644)
Fair value of scheme assets at end of period 99,778 84,658
The total return on the fund assets for the year to 31 July 2025 is £14.383m.
Remeasurements in other comprehensive income
2025 2024
Remeasurement of the net assets / (defined £000 £000
liability) in other comprehensive income:
Return on Fund assets in excess of interest 10,131 72
Other actuarial gains on assets - 726
Change in financial assumptions 8,893 (2,151)
Change in demographic assumptions (327) 148
Experience (loss) on defined benefit obligation (593) (3,683)
Changes in effect of asset ceiling- movement in
unrecognised surplus		 (18,913) 3,316
Changes in effect of asset ceiling- interest on
impact of asset ceiling		 1,115 1,312
Re-measurement of the net assets/ (defined
liability) 306 (410)

79

Notes to the Financial Statements (continued)

17
Provisions for Liabilities and Charges
Balance at 1 August
Payments made in period
Provision adjustment required in period
Balance at end of period		 Unfunded
Pension
£000
(2,290)
408
(68)
(1,950)		 2025
Total
£000
(2,290)
408
(68)
(1,950)		 2024
Total
£000
(2,292)
408
(406)
(2,290)

The unfunded pension liability is in respect of future pension liabilities arising from early retirals. The valuation of the College’s liabilities has been undertaken by independent actuaries.

Amounts recognised in the Income and 2025 2024
Expenditure Account £000 £000
Interest cost 104 108
Total cost 104 108
Benefit obligation reconciliation
Reconciliation of opening and closing balances of the present value of the defined benefit
obligation
Opening defined benefit obligation
Interest cost
Change in financial assumptions
Change in demographic assumptions
Experience loss on defined benefit
obligation
Unfunded pension payments
Closing defined benefit obligation		 2025
£000
2,290
104
(83)

27
20
(408)
1,950		 2024
£000
2,292
108
23
(8)
283
(408)
2,290

80

Notes to the Financial Statements (continued)

Remeasurements in other comprehensive income

Remeasurement of the net assets / (defined
liability):
Change in financial assumptions
Change in demographic assumptions
Experience (loss) on defined benefit obligation
Re-measurement of the net assets/ (defined
liability
18
Capital Commitments
Commitments contracted for at period end		 2025
£000
83
(27)
(20)
36
2025
£000
0		 2024
£000
(23)
8
(283)
(298)
2024
£000
383

19 Financial Commitments

At period end the College had annual commitments under operating leases as follows:

Payable During the year
Land and Buildings
Others
Land and Buildings
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Others
No later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2025
£000
166
23
189
96
315
343
754
9
-
-
9		 2024
£000
161
33
194
105
257
400
762
-
-
-
-

Land and Buildings include £32k payable during the year and £343k within future year’s commitments in respect of leasehold construction costs paid previously and amortised over 30 years.

81

Notes to the Financial Statements (continued)

20 Post Balance Sheet Events

No events have occurred, since 31 July 2025 and up to the date of signing the Financial Statements, that would materially affect the information provided.

21 Contingent Liability/Asset

Full provision has been made for all known liabilities.

A contingent liability requires to be noted but cannot be estimated with sufficient accuracy. It affects future employer pension liabilities to LGPS members following a recent employment tribunal (the Goodwin Tribunal) changing the pension entitlement of male survivors in opposite sex marriages to take account of the female member’s service from 6 April 1978 rather than 6 April 1999. Whilst the government have confirmed that a remedy will be required for all public sector pension schemes, this change is not reflected in the valuation of pension liabilities at 31 July 2025. The Government’s Actuary Department (GAD) is undertaking a review to assess the potential impact on public sector pension schemes because insufficient data is currently available to precisely ascertain the impact. The impact is expected to be minimal and not material for LGPS funds so the actuary does not currently intend to make any adjustments to accounting valuations as a result of the Goodwin Case.

In 2022/23 the College financial statements included a £3.7m creditor in respect of the anticipated costs associated with the implementation of a national middle management and support staff job evaluation exercise for colleges. The accounts also included a corresponding £3.7m debtor for the Scottish Funding Council (SFC) who held this funding. The funds were required to be returned to Scottish Government in 2023 and we were informed of this in 2024. The Scottish Government remains clear that the responsibility for funding these job evaluation costs rests with it.

This change in approach between Scottish Government and the SFC required a change to the accounting treatment for job evaluation in 2023/24, so a provision of £4.0m was created for the middle management/support staff job evaluation exercise, as it is a past event where an obligation exists, its impact can be reliably measured, and it is likely to result in an outflow of benefits in future periods. The corresponding revenue was removed in 2023/24 due to these funds no longer being reserved by SFC or the Scottish Government for this purpose in line with SFC Accounts Direction.

The provision increased to £4.678m in 2024/25 to reflect the on-going liability and ensure the costs of the exercise are recognised and a liability provided for the total cost of the exercise to date.

We are reporting a corresponding contingent asset for £4.678m because we would require this additional funding from Scottish Government. It is important to note that this is a technical accounting change as repayment of the funds by SFC to Scottish Government leaves the college without associated funding, but the College will require this funding from Scottish Government to fulfil its obligation.

22 Related Party Transactions

The Board of Management of Dundee & Angus College is a body incorporated under the Further and Higher Education (Scotland) Act 1992 sponsored by the Scottish Funding Council (SFC), who in turn are sponsored by the Scottish Government Learning Directorate.

82

Notes to the Financial Statements (continued)

The Scottish Government Learning Directorate is regarded as a related party. During the period the College had various material transactions with other entities for which the Scottish Government Learning Directorate is regarded as the sponsor department, viz; Students Awards Agency for Scotland (SAAS) and Scottish Funding Council. Of all these public bodies, transactions with SFC are the most significant to the College, and all income from SFC is disclosed in Note 3.

In addition, Dundee & Angus College has had material transactions with other Government Departments and other central government bodies.

Due to the nature of the College’s operations and the composition of the Board of Management (being drawn from local public and private sector organisations), it is inevitable that transactions will take place with organisations in which a member of the College’s Board of Management or key managers of the College may have an interest.

During the period under review, transactions with bodies in which a member of the Board of Management or key managers of the College had an interest are noted below:

Member Organisation Position in
Organisation		 Nature of
Transaction		 College
Income		 College
Expenditu
re		 Balance
as at
31st July
£ £ £
Jackie
Buchanan		 Angus Council Director of Legal &
Democratic
Services		 Grant income and
service charges		 941,040 (79,220) 4,040
Kelly
McIntosh		 Angus Council Director of
Education and
Lifelong Learning		 Grant income and
service charges		 941,040 (79,220) 4,040
Simon
Hewitt		 SAAS Principal (D&A
College)		 Student Course Fees 1,394,458 (44,975)
Simon
Hewitt		 Gardyne
Theatre Ltd		 Director Staff Salaries,
Licence to Operate
and Service Level
Agreement yearly
charges		 332,079 (241,190) 0

83

Notes to the Financial Statements (continued)

Other Related Parties:

Dundee & Angus Foundation. The Foundation is a registered charity, and its objective is to advance education and in particular the enhancement of the learning experience of students in Dundee and Angus. Its trustees include representatives of the College serving alongside independent trustees. Details of donations received from the Foundation is provided in note 8.

23
Bursaries and other
student support
funds
Balance b/fwd
Allocation received
College Contribution
to Funds
Expenditure
Repaid to Funding
body as Clawback
Virements
Balance c/fwd
Represented by :
Repayable to
Funding body as
clawback
Retained by College
for students		 FE
Bursary
£000
484
6,426

-
(5,946)
(484)
-
480
480
-		 Year ended
31 July 2025
EMA’s
£000
Other
£000

12
0
356
913
-
-
(356)
(908)
-
-
-
-
12
5
-
5
12
-		 Year ended
31 July 2024
Total
£000
Total
£000
496
451
7,695
8,047
-
42
(7,210)
(7,605)
(484)
(439)
-
-
497
496
485
484
12
12		 Year ended
31 July 2024
Total
£000
Total
£000
496
451
7,695
8,047
-
42
(7,210)
(7,605)
(484)
(439)
-
-
497
496
485
484
12
12
496
484
12

Repayments to Funding body as clawback within the year relate to a surplus of funds available from the prior year.

Grants and bursary funds received from both SFC and the Students Award Agency for Scotland are available solely for students; the College acts only as paying agent. The funds and related disbursements are therefore excluded from the Consolidated Statement of Comprehensive Income, with the exception noted below.

In accordance with Accounts Direction for 2024/25 issued by the SFC, Further Education Childcare Funds have been included in the Consolidated Statement of Comprehensive Income. The Childcare funds reported in Note 24 below now incorporate both Higher and Further Education funds.

84

Notes to the Financial Statements (continued)

24
FE & HE Childcare Funds
Balance b/fwd
Allocation received
Expenditure
Repaid to Funding Body as Clawback
Virements
Balance c/fwd
Represented by:
Repayable to Funding body as clawback
Retained by College for students		 Year Ended
31 July 2025
£000
-
305
(305)
-
-
-
-
-		 Year Ended
31 July 2024
£000
-
412
(412)
-
-
-
-
-

25 Subsidiary Undertakings

Details of the subsidiary company, which is registered in Scotland and 100% owned by the College, is as follows:

Company

Principal Activity

Gardyne Theatre Limited Promotion of performing arts

The company has no share capital but is limited by guarantee. The ultimate controlling party is Dundee & Angus College, the only member, and control is exercised by virtue of the provisions of the Memorandum and Articles of Association. The trading results of the subsidiary have been included in the consolidated results.

At 31 July 2025, staff are being consulted on plans to close Gardyne Theatre Limited and bring management of the Theatre back into the College. The consultation is expected to end on 30 September 2025 and if agreed, action will be taken to close Gardyne Theatre Limited by 31 December 2025. In the meantime, the trading results of Gardyne Theatre Limited for the year to July 2025 have been reported in these accounts.

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Appendix – 1 Accounts direction for Scotland’s colleges 2024-25

Scottish Funding Council 14 August 2025

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